Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 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

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×