China’s factory gate inflation slows down in November | WSAU News / Talk 550 AM · 99.9 FM

BEIJING (Reuters) – China’s factory gate inflation slowed in November, as the government cracked down on fleeing commodity prices and an eased crisis of power, amid Beijing’s push to boost sales. slow down the economy.

The producer price index rose more slowly than the 13.5% gain in October but faster than the 12.4% gain expected in a Reuters poll of analysts.

China’s economy, which had an impressive recovery from the pandemic last year, has lost momentum in recent months as it has struggled with soaring prices, a slowing manufacturing sector, debt problems in the real estate market and the persistent COVID-19 outbreak.

The People’s Bank of China on Monday announced a cut in the amount of cash banks must hold in reserve, the second move this year, to prop up slowing growth.

Factory inflation has accelerated since May this year as commodity prices soar, putting pressure on downstream businesses to pass their costs on to consumers.

Authorities have implemented a series of interventions in recent months, including setting immediate ex-factory price targets and requiring rapid production to cool down hot prices, measures proven proved to be effective in alleviating power shortages expected this winter.

The consumer price index (CPI) rose 2.3% year-on-year, the National Bureau of Statistics said in a separate statement, slower than expectations for a 2.5% increase but up from 1.5. % in October.

Consumer inflation remains modest as strict COVID-19 regulations hamper consumption and hurt demand, leading to a limited shift away from high factory prices.

Analysts say no cases of the Omicron COVID-19 variant have been reported in China, but its emergence could add pressure to a strict zero-tolerance policy on cases. coronavirus and increasing logistical challenges for exporters, analysts say.

The world’s second-largest economy faces many headwinds heading into 2022, including a downturn in the real estate sector.

China’s top government think tank on Monday recommended authorities set an economic growth target above 5% for next year and a consumer inflation target of 3%.

(Reporting by Liangping Gao and Gabriel Crossley; Editing by Sam Holmes) China’s factory gate inflation slows down in November | WSAU News / Talk 550 AM · 99.9 FM

Dais Johnston

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