China's producer inflation accelerates to 5%

Producer inflation accelerated from 3.8% in August to its highest level since June 2022. Consumer inflation rose 0.9%, below the expected 1% increase and slightly above August's 0.8%. Monthly consumer prices increased 0.2%, compared with expectations of 0.3% and a previous reading of 0.4%.

The divergence between producer and consumer inflation highlights how higher energy and commodity costs are affecting manufacturers more strongly than households. Rising input costs could pressure industrial profit margins, while weak domestic demand limits companies' ability to pass those costs on to consumers. The figures reinforce concerns about an uneven Chinese economic recovery.