According to the National Statistical Office of the People’s Republic of China, the Producer Price Index (PPI) rose 9% in May, the highest growth since September 2008. As noted by the CNBC television channel, analysts polled by Reuters expected less dynamics – around 8.5%.
Such a significant increase in prices in May is partly due to the effect of a low base – in May last year, when China’s economy was just beginning to emerge from coronavirus restrictions, the index fell by 3.7%.
In an interview with CNBC, Gan Ji, professor of finance and director of MBA programs at Beijing Cheung Kong Business School, said that the continued rise in raw material prices is very worrying for Chinese companies, especially in the manufacturing and construction sectors, which is driving up producer prices. “Companies see an increase in costs and believe that this situation will last until the end of the year,” the expert said.