China's April factory-gate inflation hits near four-year high amid rising energy costs

(ECNS) - China's factory-gate inflation accelerated for a second consecutive month in April, reaching its fastest pace in nearly four years as rising global energy prices linked to Middle East tensions pushed up manufacturing costs.

Data released by China's National Bureau of Statistics (NBS) on Monday showed the producer price index (PPI) rose 2.8% year-on-year in April. That beat a Reuters poll estimate of 1.6% and marked the strongest increase since late 2022. March's reading had already signaled a turning point, with a 0.5% rise that ended a three-year streak of declines.

Consumer inflation also firmed. The consumer price index (CPI) climbed 1.2% from a year earlier, above analysts' expectations for a 0.9% increase and higher than March's 1.0% gain, according to the NBS.

NBS statistician Dong Lijuan attributed the stronger CPI to higher international crude oil prices and robust holiday travel demand. She noted that soaring global commodity prices, combined with rising demand in certain domestic sectors, also helped lift factory-gate prices.

Dong said April PPI rose 1.7% month-on-month, with both annual and monthly gains expanding from March.

The latest inflation figures may add to concerns about rising production costs for Chinese manufacturers, particularly amid ongoing geopolitical tensions that are pressuring global energy markets.

(By Zhang Jiahao)