BEIJING: Factory prices in China rose again in March, increasing at the fastest rate in more than two years, official data showed on Friday (April 9), supported by higher commodity prices and the economic recovery of the country. countries after Covid-19.
The Producer Price Index (PPI), which measures the cost of goods leaving the factory, exceeded growth expectations by 4.4 percent from a year ago, the National Bureau of Statistics.
This figure was “due to factors such as rising international commodity prices”, including those of crude oil and iron ore, and spurred by “an increase in domestic industrial production and demand for investment, ”said Dong Lijuan, senior statistician of NBS.
Comment: China is the only major economy to grow this year. It’s not enough
Analysts expected the PPI to rise given the low base of comparison last year, when lockdowns and tight controls on moves to eradicate COVID-19 – which first emerged in a central city of China – have resulted in economic activity.
But the economy has since rebounded after China largely brought the virus outbreak under control, with leaders setting a 2021 growth target above 6% and a mass vaccination campaign underway.
The International Monetary Fund also raised its growth forecast for China this week to 8.4%, after the world’s second-largest economy became the only major economy to grow last year.
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Official data on Friday showed that China’s consumer price index (CPI) rose 0.4 percent year-on-year in March, the prices of some food products such as fresh fruit growing, but that of the pork in decline.
China’s CPI, a key indicator of retail inflation, has been pushed up in recent years by pork prices after an African swine fever outbreak ravaged stocks.
This has since stabilized with officials scrambling to increase the country’s staple meat supplies.