China Sept PPI jump 6.9%, well above forecast; CPI up 1.6%

[BEIJING] China's producer prices rose 6.9 per cent in September from a year earlier, beating market expectations, the National Bureau of Statistics (NBS) said on Monday.

The producer price index had been expected to rise 6.3 per cent in September, the same pace as in the previous month.

A year-long construction boom has helped boost prices for building materials from steel to copper pipes, giving China's long-ailing industrial sector its best profits in years.

China's strong demand for raw materials this year has also helped produce a reflationary pulse for manufacturers that is being felt worldwide.

But sharply higher input costs have squeezed margins for Chinese companies further down the supply chain.

China's consumer price index (CPI) rose 1.6 per cent in September on-year, in line with forecasts but easing from a gain of 1.8 per cent in August.

REUTERS