China's producer price index (PPI) picked up 9.5% on the year in August, with the growth expanding 0.5 percentage point over a month ago, said a spokesman of the National Bureau of Statistics on September 15.
The higher PPI growth in August was mainly driven by rising prices of production materials. In August, prices of production materials climbed up 12.7% year on year, with the growth 0.7 percentage point higher than last month.
This is attributed to price hikes in coal, chemical and steel industries as a result of strong downstream demand, tight supply and high price in upstream industries in earlier period.
The PPI may continue running high in the short term, the spokesman predicted.
On the one hand, the prices of bulk commodities in international market remain high and the trend is uncertain. Domestic prices of some products could further move upward owing to tight supply.
On the other hand, thanks to supply guarantee and price stabilization measures, growth of prices of some commodities has slowed down. Meanwhile, prices tend to stabilize as producers are incentivized to step up production and increase supply amid continuous price rises.
(Writing by Shengnan Liu Editing by Tammy Yang)
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