China Producer Prices Change

China's producer prices surged by 13.5% year-on-year in October 2021, beating market expectations of a 12.4% gain and following September's figure of a 10.7% rise. This was the tenth straight month of increase in factory gate prices and the strongest growth since 1995, amid a jump in cost of raw materials and widening power shortage. Prices of means of production increased faster (17.9% vs 14.2% in September), led by extraction (66.5% vs 49.4%), raw materials (25.7% vs 20.4 %), and processing (10.8.% vs 8.9%). At the same time, prices of consumer goods advance more (0.6% vs 0.4%), with cost accelerating for both daily use goods and clothing rose (0.8 vs 0.4%) and food (1.0% vs 0.7%), while fell for consumer durables (-0.1% vs 0.2%). On a monthly basis, producer prices rose 2.5 percent.