China's factory inflation hits 45-month high on energy price shock
Higher energy and commodity costs pushed factory-gate inflation to its fastest pace since July 2022, according to the National Bureau of Statistics.
- On Monday, the National Bureau of Statistics reported China's producer prices jumped 2.8% in April, exceeding forecasts, while consumer prices accelerated to 1.2% from a year earlier, surprising analysts expecting slower growth.
- Triggered by the ongoing war in Iran, the worst energy disruption in generations throttled traffic through the Strait of Hormuz, sharply raising commodity costs and ending three and half years of factory deflation in China.
- NBS statistician Dong Lijuan said the rise was "driven by factors including the rapid rise in international commodity prices." Companies struggle to pass costs to customers, pressuring profit margins amid weak domestic demand.
- Following the data release, the Chinese yuan gained as much as 0.2% against the dollar, breaching the psychological level of 6.8 per dollar. Export growth accelerated last month, pushing the monthly trade surplus to $84.8 billion.
- Chinese President Jinping will host President Donald Trump in Beijing later this week as both leaders seek to stabilize relations strained by trade, export controls, Taiwan, and the Iran war.
19 Articles
19 Articles
China's factory inflation hits 45-month high
China's producer prices blew past expectations to rise to a 45-month high in April, while consumer inflation also accelerated as global energy costs remained elevated, piling more pressure on manufacturers already grappling with weak demand at home.
China's Producer Price Index (PPI) continued its rebound in April, recording a growth rate that significantly exceeded market expectations. The Consumer Price Index (CPI) also maintained a moderate upward trend. However, assessments suggest it is still too early to interpret this improvement in price indices as a signal of economic recovery, as the current rise is characterized more by short-term inflation triggered by rising energy and raw mate…
China's consumer price index (CPI) rose 1.2% in April compared to the previous year.
Coverage Details
Bias Distribution
- 55% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
