Shanghai (China), Oct 14 (EFE) .- Industrial prices in China in September marked their biggest rise (10.7%) since the historical series began due to the increase in the costs of raw materials, especially coal, while the CPI continued to moderate, even more than analysts expected.
According to official data published today by the National Statistics Office (ONE), the consumer price index (CPI), the main indicator of inflation, increased by 0.7% year-on-year in September, while the price index at the production (PPI), which measures wholesale prices, rose 10.7%.
The rise in the PPI was 1.2 points compared to the August mark, and even exceeded that expected by analysts, who forecast a rise of around 10 or 10.5%.
In fact, it is the highest rise in the historical series of the ONE, which started in October 1996, above the one that until now was in the first position of that table: 10.1% in August 2008 , when prices also shot up due to the rising cost of raw materials and energy, although at that time the protagonist was not coal but steel.
COAL AND POWER SUPPLY PROBLEMS
“The rise in prices of industrial products continued to grow in September, affected by factors such as rising coal prices and some energy-intensive industries,” said ONE statistician Dong Lijuan.
In fact, prices in the coal mining and refining industry increased by 12.1% compared to August and 74.9% compared to September 2020, while in the oil, coal and other fuels processing industry they did so 3.3% month-on-month and 40.5% year-on-year.
The global supply crisis – exacerbated in China in recent weeks by floods in a major producing region – meant that the most traded coal futures contracts on the Zhengzhou Resource Futures Exchange (center) hit an all-time high this week. , standing at more than double the price of the beginning of the year.
This, together with a greater demand for energy by the industrial sector in the context of the post-coronavirus economic recovery, forced electricity companies to sell at a loss, which resulted in blackouts in some northeastern regions of the country or rationing policies of electricity in manufacturing poles such as the southeastern province of Guangzhou.
Disclaimer: This article is generated from the feed and not edited by our team.