China's producer price index at a 2-year high of 8.1 per cent in April news
09 May 2008

China's producer price inflation, based on the ex-factory price of industrial products, edged up to a two-year high of 8.1 per cent in April from 8.0 per cent in March, helped by soaring prices of food, energy and raw materials.

The producer price index in China was as low as only 2.4 per cent in August last year, indicating intensifying inflation pressure, the National Bureau of Statistics (NBS) said.

The ex-factory prices of raw materials, fuel and power were up 11.8 per cent.

Ex-factory prices of crude oil surged 37.9 per cent in April over the same period last year, while gasoline was up 10.8 per cent, diesel 10.2 per cent and kerosene 11.7 per cent.

The producer prices of raw coal jumped 20.9 per cent and those of steel products rose between 24.9 per cent and 41.1 per cent.

The purchasing prices, or costs, of fuel and power rose 21.2 per cent, ferrous metals 20.8 per cent, non-ferrous metals 6.1 per cent and chemical raw materials 4.2 per cent.

The PPI for manufactured goods was up 7.2 per cent in the first four months of this year, while the costs of raw materials, fuel and power rose 10.3 per cent.

The price index of food, a major component of the consumer price index (CPI), was up 11.9 per cent, exceeding that for garments (2.3 per cent) and daily commodities (3.7 per cent). The prices of consumer durables were down 0.5 per cent, said the NBS.

Consumer price inflation in China is expected to have risen to a near 12-year high of 8.5 per cent from 8.3 per cent in March.

China proposes to hold annual CPI around 4.8 per cent this year.


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China's producer price index at a 2-year high of 8.1 per cent in April