Bloomberg: China’s Factory Inflation at 2008 High Adds to Global Pressures
Surging costs of imported commodities drove China’s factory-gate inflation to its highest level since 2008, raising the odds that exporters will begin passing on higher prices and boost inflationary pressures in the global economy.
The producer price index climbed 9% in May from a year earlier, driven by price increases for oil, metals and chemicals, the National Bureau of Statistics said Wednesday.
The median forecast in a Bloomberg survey of economists was for an 8.5% increase.
Consumer inflation increased only 1.3% from a year ago, missing an estimate of 1.6% and suggesting retailers aren’t hiking prices yet due to sluggish domestic demand.
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WNU Editor: I mentioned this a few weeks ago. Speaking globally, China is the place to look at for future trends. Or to put it more bluntly. What happens first in China eventually gets repeated in the rest of the world at a later date.
Case in point. China was the first country to experience the pandemic. The first country to close its economy. The first country to close its borders. The first country to open up (with restrictions). The first country to experience a booming economy. And now the first country to be experiencing serious inflation. My prediction. Higher inflation is coming tot he rest of the world.
More News On China Facing Inflationary Pressures
The price of goods leaving China's factories is rising at its fastest pace in 13 years -- CNN
China’s factories now charging most for their goods in almost 13 years -- SCMP
China Moves to Tame Inflation Before Prices Rise Too Much -- NYTimes
China’s producer prices surge the most since 2008, cutting into business profits -- CNBC
China Launches Price Controls After Red Hot Inflation, Highest PPI Since Lehman Collapse -- Zero Hedge
China's Inflation Could Be the World's Problem -- Bloomberg
