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China wholesale inflation rises to 5.7% in October

China's producer prices rose to 5.7% in October, while consumer inflation slowed to 0.7%.

Updated 1 min read

Published by Agyata NewsroomEditorial policyCorrections

Key points

  • Producer prices in China rose to 5.7% in October, the fastest pace since June 2022.
  • Consumer inflation slowed to 0.7% in October, missing the 0.8% forecast from Reuters economists.
  • The CSI 300 index gained 0.56% after the economic data was released.

Why it matters. Rising producer prices may increase costs for businesses, while slowing consumer inflation suggests cooling demand in the domestic market.

Updated Sources: CNBC

China's producer prices accelerated for a third consecutive month, reaching 5.7% in October, driven by higher costs in mining and raw materials. This figure exceeded the 5.3% forecast by Reuters economists. Meanwhile, consumer inflation slowed to 0.7%, missing expectations of 0.8% and falling below September's 0.9% rate. Dong Lijuan of China's National Bureau of Statistics noted that rising gasoline prices were offset by a sharper decline in food costs.

Latest updates

China wholesale inflation rises to 5.7% in October

Producer prices in China grew at the fastest rate since June 2022, accelerating for the third month in a row according to recent data. The producer price index (PPI) for October came in at 5.7%, surpassing the 5.3% expected by economists polled by Reuters. This increase was driven by rising costs in industrial inputs despite a concurrent slowdown in the consumer price measure. The divergence between wholesale and retail inflation highlights ongoing structural challenges within the Chinese economy as it navigates global trade dynamics.

CNBC

Sources

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