China's Factory Inflation Accelerates While Consumer Demand Stays Weak
China's Factory Inflation Accelerates While Consumer Demand Stays Weak
China's producer prices rose 5.7% from a year earlier in October, the fastest increase since mid-2022, as expensive oil lifted costs in mining, chemicals and other energy-intensive industries. Consumer inflation slowed to 0.7%.
China's producer prices rose 5.7% from a year earlier in October, the fastest increase since mid-2022, as expensive oil lifted costs in mining, chemicals and other energy-intensive industries. Consumer inflation slowed to 0.7%.
The split shows that external energy shocks are raising factory costs without producing strong household demand. Core consumer inflation eased to 0.8%, reinforcing concerns that weak confidence and the property downturn are limiting companies' ability to pass costs on to shoppers.
Z.Bianchi--IM
