China’s Factory Prices Rise 5.0% in September While Consumer Inflation Stays Soft

China’s factory-gate prices rose faster than expected in September while consumer inflation came in softer than forecast, pointing to rising input costs alongside weak household demand.

The producer price index rose 5.0% from a year earlier, above the 4.5% forecast and up from 3.8% in August, according to figures reported by CNBC. CNBC’s report said it was the fastest pace since June 2022 and linked the rise to fuel costs. The consumer price index rose 0.9%, below the 1.0% forecast but up from 0.8% in August.

Factory Prices

The Shanghai Composite Index fell 0.89%, or about 34 points, to 3,767.23, a one-year low, Reuters reported, as a selloff in AI hardware and supply-chain stocks continued. Turnover across the Shanghai and Shenzhen markets totalled 1.41 trillion yuan, Xinhua said.

Energy and coal shares gained as oil prices climbed. Huaneng rose 4.4%, China Coal added 3.4% and Sinopec gained 3.3%, while BAIC BluePark fell 4.1% and China Life Insurance lost 3.2%, according to Trading Economics.

Sources: CNBC; Xinhua; Trading Economics; Reuters via MarketScreener; AD HOC NEWS summary of the above.

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