Factory gate prices for October rose the fastest since 1995 in China beating forecasts as producers battling with soaring coal price and other essential commodity prices.
The producer price index (PPI) rose 13.5% from a year earlier which in September was 10.7%, according to the National Bureau of Statistics (NBS).
Meanwhile, China’s consumer price index (CPI) rose 1.5% in October compared to a year earlier and 0.7% compared to September.
The rise in PPI was fueled by multiple factors including rising raw materials costs, output cuts and soaring coal prices leading to electricity rationing.
Inflation data along with some other indicators shows China’s economy is slowing with growth rate in the fourth quarter expected to be lower than of 4.9% in the third quarter.