China’s factory, consumer inflation accelerate on robust demand
Beijing: China’s factory prices climbed for a 12th month as domestic demand remained resilient and the government continued to reduce excess industrial capacity. Consumer prices accelerated.
The producer price index rose 6.3% in August from a year earlier, versus an estimated 5.7% in a Bloomberg survey and a 5.5% July reading. The consumer price index climbed 1.8%, compared with 1.4% a month earlier, the statistics bureau said Saturday.
Global metal prices soared last month as China’s demand held up on robust investment and construction amid government reforms that may crimp supplies. That market strength underpins worldwide inflation, and helps ease debt burdens on raw-material producers.
“Strong momentum in commodity prices is driven partly by better-than-expected economic growth, but more importantly, it’s the result of supply controls and environmental inspections,” Larry Hu, head of China economics at Macquarie Securities Ltd. in Hong Kong, wrote in a recent note. Bloomberg