Source: National Bureau of Statistics
China’s factory inflation accelerated faster than expected in July, with firms already fighting to keep up with increasing raw material prices.
- Factory inflation surged 9.0% year-on-year, higher than the market consensus of 8.8%.
- The acceleration was driven by higher prices of oil and coal.
- The People’s Bank of China downplayed the surge as “most likely temporary” with the country’s recovery “not yet solid.”
- Consumer prices gained 1.0% year-on-year, faster than the 0.8% expected, but slower than the 1.1% climb in June.
- Food prices fell 3.7% year-on-year, as pork prices plunged by 43.5%.