China's wholesale inflation hits four-year high amid weak consumer demand
China's producer prices rose 5.7% in October, its fastest since June 2022, while consumer inflation slowed to 0.7%.
China's wholesale prices jumped to their highest in four-and-a-half years in October. Producer prices rose 5.7%, beating economist forecasts of 5.3% and marking the third straight month of increases.
Mining and raw material costs drove the surge, pushed by strong overseas demand. Consumer inflation slowed to 0.7%, falling short of the expected 0.8% and down from 0.9% in September.
Core inflation, excluding food and energy, eased to 0.8% from 1%. Food prices fell more than expected, though rising petrol kept overall prices climbing.
Analysts say weak domestic demand, tied to China's troubled property sector, is holding back consumer spending.
- 5.7%
- October PPI
- 0.7%
- Consumer inflation October
- June 2022
- Fastest PPI since
- 0.8%
- Core inflation
Why it mattersThe gap between rising factory costs and weak consumer inflation reflects slow domestic demand, tied to China's property sector troubles.
AustraliaRising Chinese commodity prices could support Australian mining and resource exporters, but weak Chinese consumer demand may limit overall gains.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
