Source: National Bureau of Statistics
Chinese producer prices growth accelerated to a 13-year high in August due to hikes in coal, chemicals, and metal prices, but economists believe this may already be the peak. MCHI is down 1.65%.
- The producer price index climbed 9.5% in August versus 9.0% the previous month. This is the biggest growth in 13 years since August 2008.
- The growth was attributed to the increase in coal, with coal mining and washing sector prices up 57.1% year-on-year. Local coal prices hit a record high on Tuesday.
- Economists expect coal and metal prices to ease with the decline in construction output amid restrictions on the property sector and the decelerating credit growth.
- The producer price index is expected to have peaked in August, as economists believe factory inflation will not rise much further.
- Consumer prices climbed 0.8% year on year, falling below the target range of 3% for the year.
- Social restrictions due to the COVID-19 delta variant continue to hit demand, even as the country has generally addressed the latest outbreaks.