China’s producer price index rose 3.8% year on year in August, coming in above the 3.7% market forecast. The print points to firmer factory-gate inflation relative to expectations.
Upstream Price Pressures
The data indicate that upstream price pressures are running slightly hotter than anticipated, which can feed through supply chains over time.
PPI Rate Versus Expectations
August’s outcome leaves the PPI rate marginally above consensus, at 3.8% versus 3.7%.