China Factory Gate Price Jump Raises Global Inflation Concern
Beijing, April 9 (UrduPoint / Pakistan Point News - 9th Apr, 2021 ) :Chinese factory prices hit a more than two-year high in March, data showed Friday, highlighting the country's strong recovery but feeding concerns it could filter through to the global economy just as central banks battle to maintain ultra-loose monetary policies and low interest rates.
The figure was "due to factors such as rising international commodity prices" including crude oil and iron ore, and boosted by an "increase in domestic industrial production and investment demand", said NBS senior statistician Dong Lijuan.
Analysts had expected the rise in PPI given the low base of comparison last year, when lockdowns and strict movement controls were imposed to stamp out Covid-19.
Observers said that with China the leading exporter in the world, the rises could cause a headache for global central banks, which are already trying to temper worries that an expected surge in economic activity this year will fan inflation and force them to wind back their accommodative monetary policies.