China's Sept producer price index spikes 6.9%

Beijing

CHINA'S producer price inflation unexpectedly accelerated to a six-month high in September as a construction boom shows no signs of abating and a government crackdown on air pollution triggers fears of winter shortages and frenzied jumps in commodity prices.

China's strong demand for building materials has triggered a year-long commodities rally which is helping to buoy manufacturing activity and inflation around the world, even if it has yet to trickle down to the consumer level.

China's economy is expected to grow 7 per cent in the second half of this year, the country's central bank governor said, defying economists' expectations of a …