China's producer prices rose 5% in September — CNBC

China's producer price index rose by 5% in September, the fastest pace since June 2022. The figure exceeded the 4.5% forecast of economists surveyed by Reuters and accelerated from 3.8% in August, CNBC reports.

Fuel raised business costs

According to the outlet, producer prices rose amid more expensive fuel, which increased companies' costs. At the same time, consumer prices increased by 0.9% in September. This was slightly below economists' expectations of 1%, but above the August figure of 0.8%.

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State of the Chinese economy

The new inflation data were released amid the slowest pace of growth in China's economy in more than three years. In the second quarter, China's GDP grew by 4.3%, falling short of market expectations.

August statistics showed that retail sales grew more slowly than forecast, while industrial production exceeded expectations. A September 28 statement by China's State Council said that countercyclical adjustments would be strengthened in response to the economy's current problems. Lynn Song, chief economist for Greater China at ING, noted that this indicates a certain shift in rhetoric; in her view, additional support measures may emerge going forward to achieve short- and long-term growth targets.