Surge in China’s Factory-Gate Prices Adds to Inflation Worries

China’s factory-gate prices jumped by the most in 3½ years in April, driven by surging commodities prices, raising concerns that inflationary pressures could spread globally, the Wall Street Journal reported. The country’s consumer-price index, a measure of inflation that tracks prices for a basket of goods and services, rose 0.9% in April from a year earlier, reaching a seven-month high. The producer-price index, a gauge of factory-gate prices, rose 6.8% last month, the fastest pace since October 2017, China’s National Bureau of Statistics said Tuesday. A prolonged disruption in global supply chains and the resurgence of Covid-19 in some emerging markets fueled commodities prices’ climb. That in turn pinched profit margins for Chinese producers, who gained share in global exports during the pandemic and saw overseas demand continue to boom this year. Read more. (Subscription required.)
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