China’s factory and consumer prices grew faster than expected in April as Covid restrictions disrupted supply chains and pushed people to stockpile food.
CSI 300 Index up +1.44%, CNYUSD up +0.27%
The producer price index jumped 8% from a year ago compared to 8.3% in March, above the average estimate of a 7.8% increase.
Consumer-price growth expanded to 2.1% from 1.5% in the prior month, faster than a projected 1.8% gain.
Even though commodity prices are dropping down from the very high levels driven by the war in Ukraine, costs remain high and have hurt manufacturers’ profits.
Food became pricer in April as several areas were locked down to control the spread of Covid. Fresh vegetable costs rose 24% from a year ago.
Core CPI, which excludes volatile food and energy prices, jumped 0.9% compared to a 1.1% increase in March.