Prices of Chinese factory goods rise | Sunday Observer

Prices of Chinese factory goods rise

12 June, 2021

Hong Kong (CNN Business) - China is getting pummeled by rising costs that have pushed producer price inflation to its highest level in nearly 13 years.

Surging inflation in the world’s factory threatens to spill over into the rest of the globe and drive prices that were already ballooning even higher. But economists also say the pressure could begin to ease soon.

The country’s producer price index — which measures the cost of goods sold to businesses — soared 9% in May from a year ago, according to government data released Wednesday. That is the fastest increase since September 2008, when China was grappling with the consequences of an overheating economy after several years of annual GDP growth of more than 10%.