BEIJING (Reuters) – Prices at China’s factories in July rose at a faster pace than the previous month and beat analysts’ expectations, adding to pressure on companies struggling with high raw material costs. , while consumer inflation decreased slightly.
The producer price index (PPI) grew 9.0% over the previous year, matching the maximum observed in May, the National Statistics Office (NBS) said in a statement on Monday. Analysts in a Reuters poll had expected PPI to rise 8.8%, unchanged from June.
China’s economy has largely recovered from the disruptions caused by the COVID-19 pandemic, but the expansion is losing steam as businesses face increasing tensions over higher commodity prices and collars. bottle of the global supply chain.
The global spread of the more infectious Delta variant of the virus and new outbreaks of cases at home, in addition to recent rains and floods in some Chinese provinces, have also disrupted economic activity.
PPI, a benchmark indicator of a country’s industrial profitability, rose 0.5% monthly, accelerating from a 0.3% rebound in June.
China, as the leading consumer of both coal and iron ore steel, has stepped up efforts to control rising raw material prices that have reduced manufacturers’ margins, including increased inspections on rigs. trade and the release of state reserves.
Dalian iron ore was on track to end July with a monthly loss of around 10%, the steepest since February 2020.
A separate statement from the NBS showed that the consumer price index (CPI) in July rose 1.0% from a year earlier, compared with a 1.1% increase in June and below the government’s target of about 3% this year.
The index was expected to rise 0.8%, according to a median forecast from a Reuters poll.
On a monthly basis, the CPI rose 0.3%, compared with a 0.2% increase according to the Reuters survey and a 0.4% drop in June.
The core consumer price index, which excludes volatile food and energy prices, stood at 1.3% year-on-year, down from a 0.9% increase in June.
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