Beautiful Virgin Islands

Wednesday, Aug 27, 2025

Key price measure rises at fastest rate on record

Key price measure rises at fastest rate on record

China's "factory gate" prices - a measure of what manufacturers charge wholesalers for products - grew at the fastest rate on record last month.

The soaring costs of goods comes as Chinese companies face power cuts and surging commodity prices.

China is the world's biggest exporter and so price rises could affect other countries.

Firms globally are grappling with supply issues as economies emerge from the pandemic.

Major power shortages in China - caused by a jump in demand from industry, high energy prices and the country's shift to cleaner energy sources - have halted production at factories including suppliers of global brands like Apple.

Official figures showed that the producer price index (PPI) rose by 10.7% from a year earlier in September, the fastest pace of growth since records began in 1995.

But there is currently little evidence that these higher costs are being passed on to Chinese consumers.

China's consumer price index, which was also published on Thursday, rose by 0.7% year-on-year in September, edging up from the previous month but below most economists' forecasts.

However, that may change in the coming months as manufacturers' profits are squeezed and businesses are hit with higher electricity prices.

Demand amongst consumers may have weakened too for items such as household goods, clothing and food due to fluctuating costs.

The cost of goods in China are watched for signs that prices may rise in other parts of the world, which could push up inflation in countries that import its products.

Countries including the UK and US have seen inflation move higher in recent months as their economies open up after the pandemic.

That has led to growing expectations that central banks will be forced to increase the cost of borrowing and reverse emergency measures aimed at reducing the impact of lockdowns.

Some countries, including New Zealand, South Korea and Norway, have increased their interest rates in recent weeks in a bid to cool their economies and ease inflationary pressures.

The power cuts have disrupted many industries in the country, particularly those that use a large amount of energy, including cement production, steel and aluminium smelting.

The price of coal used in many of China's power plants has hit a series of record highs in recent days as utility companies struggle to produce enough electricity to meet demand.

Beijing has taken steps to ease the power crunch, including calling on coal miners to boost output and managing the amount of electricity used by large factories.


China is a country caught in the middle of a global struggle - to develop but also be green


Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
×