China’s factory gate inflation accelerates

B- tion, a key barometer of the industrial sector, accelerated sharply in August, in excess capacity which has plagued China’s economy.

(PPI), which measures costs for percent year on year in August, much faster than expected, of

- tered in July, according to the National Bureau of Statistics, which Bloomberg said represented 12

China’s consumer price index ( CPI), a main gauge of retail percent year-on-year in August,

the rise in prices for produce like eggs and vegetables which have been driven up by heavy rain and high temperatures over

is still well below the government’s

After several years of persistent deflation, producer prices re

government’s campaign to reduce excess capacity in the industrial sector, particularly among stateowned steel firms and cement manufacturers, which has reduced

“Commodity prices are the main driver,” lifting PPI, said Wang Qiufeng, an analyst at China Chengxin

Factory have also been boosted by buoyant domestic demand which is being stoked by China’s booming infra