Producer inflation in China is at the highest level since 2022

According to data released by China's National Bureau of Statistics (NBS), producer prices increased by 5.7 percent in October compared to the same period of the previous year.

This jump, which followed the 5 percent increase recorded in September, exceeded the median estimate of 5.3 percent in a Bloomberg survey of economists and exceeded all expectations except one.

NBS statistician Dong Lijuan said in a separate statement; He stated that nine industrial branches, led by input (upstream) sectors such as coal mining, oil and natural gas extraction and fuel processing, contributed more than 6 percentage points to the overall increase in producer inflation.

Slowdown in consumer inflation

On the consumer side, a contrary picture emerged due to this sharp increase in producer prices. Consumer price index (CPI) decreased to 0.7 percent in October, from 0.9 percent in the previous month, a decrease above expectations.

Core CPI, which excludes fluctuating food and energy prices, fell to 0.8 percent, reaching its lowest level this year.

It was observed that the increase in production costs could not be fully reflected from the factory gate to the consumer.