Will China producer prices continue their rapid rise?
Chinese inflation data on Friday is poised to show a continuing rise in the country’s factory gate prices, which have surged this year on a global commodity rally.
Economists forecast by Bloomberg expect the producer price index to increase by 8.7 per cent. May’s PPI data showed an 9 per cent rise, which was the fastest rate of increase since the financial crisis of 2008.
Soaring prices for raw materials have pushed the index higher, which has fuelled concerns over a potential spillover into consumer price inflation, which remains muted.
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