SteelOrbis Shanghai
In October, China's producer price index (PPI) for industrial products increased 6.6 percent year on year, down by 2.5 percentage points compared with the growth rate in September. Purchase prices for raw materials, fuel and power climbed up by 11.0 percent, a sharp drop of three percentage points compared to the increase rate in September.
From January to October, the PPI rose 8.2 percent year on year, with purchase prices for raw materials, fuel and power up by 12.2 percent compared with the same period last year.
Although the decline in the PPI growth rate reduces the cost pressure on enterprises, business performance is not expected to improve on the back of these figures. The slip in the PPI increase rate is mainly attributable to sluggish demand.