Citizens are shopping at a supermarket in Nanjing, East China's Jiangsu province, on March 9, 2024.
Costfoto | Nurphoto | Getty Images
China's producer price index climbed at its fastest pace in over four years, rising 5% in September as higher fuel prices pushed up costs for businesses.
The increase was higher than the 4.5% expected by economists polled by Reuters, and sharply up from the 3.8% seen in the previous month.
Consumer prices saw a 0.9% rise, marginally missing expectations of 1%, but up from 0.8% in the month before.
The higher inflation figures come as China's economy grapples with its lowest growth rate in more than three years. GDP growth for the second quarter of the year missed expectations at 4.3%.
While economic data for August showed that retail sales expanded more slowly than expected, industrial output beat expectations.
On Sept 28, a State Council readout signaled that more policy support could be on the way for the Chinese economy, saying that "countercyclical adjustments will be intensified in response to current problems in the economy."
Lynn Song, chief economist for Greater China at ING, wrote that "It marks a bit of a shift in tone," adding that more policy support rollouts will be coming so as to reach both short- and long-term growth targets.
"These include the 4.5%-5.0% GDP growth target for 2026, and the longstanding goal to double GDP from 2020 to 2035."
— This is breaking news, please check back for updates.