BEIJING, May 11 (Reuters) – China’s producer prices surpassed expectations in April to hit a 45-month high, while consumer inflation also accelerated as global energy costs remained elevated, \u200cpiling more pressure on manufacturers already grappling with weak demand at home.<\/p>\n
The producer \u200cprice index (PPI) increased 2.8% from a year earlier, National Bureau of Statistics (NBS) data showed on Monday, compared with a 1.6% \u200brise forecast in a Reuters poll. The gauge had reversed a 41-month declining streak in March when prices rose 0.5%.<\/p>\n
The consumer price index (CPI) rose 1.2% from a year earlier versus an expected 0.9% rise. It climbed 1% the previous month.<\/p>\n
China’s policymakers have repeatedly vowed to boost domestic demand, curb \u200cexcessive market competition and drive a \u2060rebound in prices as deflationary pressures weigh on businesses’ profit margins.<\/p>\n
Inflation driven by external price shocks, however, does not indicate an improvement in the \u2060supply-demand balance and could spell new headaches for the export-led economy.<\/p>\n
The NBS attributed higher factory-gate inflation to rising prices in sectors such as non-ferrous metals, oil and gas and tech equipment, according to statistician Huo \u200bLihui in \u200ba statement.<\/p>\n
Beijing’s sizeable energy reserves and diversified supply \u200bmix have cushioned its economy from the \u200cimpact of energy supply disruptions in the Middle East, and its exports remained resilient this year due to robust demand for AI-related goods and as firms stockpiled components on fears over rising material costs.<\/p>\n
China’s export engine is vulnerable to swings in demand from global trade partners, many of whom are scrambling to contain the fallout from the Middle East conflict.<\/p>\n
Rising global energy costs \u200care also pushing the cost of living higher. China’s \u200bstate planner has raised retail prices of gasoline and \u200bdiesel since the U.S.-Israeli attacks on Iran \u200bbegan in late February, and major Chinese airlines have ramped up fuel \u200csurcharges for domestic flights. Higher living costs \u200bcould further subdue household \u200bconsumption, which has remained sluggish during a slowdown in overall economic growth and a years-long property market slump.<\/p>\n
Core CPI, which excludes volatile food and fuel prices, grew 1.2% from \u200ba year earlier compared with \u200ca 1.1% increase in March.<\/p>\n
On a monthly basis, CPI ticked up 0.3% versus an \u200bexpected 0.1% dip and compared with a 0.7% drop in March.<\/p>\n
(Reporting by Yukun \u200bZhang and Liz Lee; Editing by Jacqueline Wong)<\/p>\n","protected":false},"excerpt":{"rendered":"BEIJING, May 11 (Reuters) – China’s producer prices surpassed expectations in April to hit a 45-month high, while…\n","protected":false},"author":2,"featured_media":435574,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,1657,33448,6529,204397,85,46,16643,29958,93056],"class_list":["post-435573","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-china","tag-consumer-inflation","tag-consumer-price-index","tag-global-energy","tag-il","tag-israel","tag-national-bureau-of-statistics","tag-producer-price-index","tag-producer-prices"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/435573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=435573"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/435573\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/435574"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=435573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=435573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=435573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}