China’s factory gate prices hit over 12 year high as commodity costs rally

China’s producer prices rose at a faster pace in May to the highest level since September 2008 as domestic demand steadily recovers.
Similarly, raw material prices also continue to rally, official data shows on Wednesday.
The National Bureau of Statistics, (NBS) said China’s Producer Price Index (PPI), which measures costs for goods at the factory gate went up nine per cent year on year last month, accelerating from the 6.8-per cent growth in April.
The carryover effect contributed three per centage points to the PPI growth, while new price increases contributed 6 per centage points.
Data from the NBS shows on monthly basis, the PPI gained 1.6 per cent, quickening by 0.7 percentage points from April.
China’s factory prices returned to positive growth in January, the first time since the novel Coronavirus outbreak, representing its fifth consecutive month of positive gains………………….TO CONTINUE READING CLICK HERE