Producer price index of China puts an end to losing streak in September – People in line

English>>Economy

Updated to the 14/10/2016 – 14:33

keywords：

BEIJING, oct 14 (Xinhua) — The producer price index (PPI) for China, which measures the cost of goods to the factory exit, ended in September, a streak of 54 consecutive months of decline, according to the official data published Friday.

The value increased by 0.1 per cent year-on-year, representing the first positive recording since march of 2012, according to the National Bureau of Statistics (NBS).

In inter-monthly terms, the index rose 0.5 per cent due to the recovery of prices in a greater number of the sectors examined, 8 to 25, as indicated by the statistical upper BNE Yu Qiumei.

on the other hand, the change is intimately linked with the rise of prices in several key industries, including the metallurgy of ferrous metals and coal mining, said Yu in a statement.

The prices of the mining sector of coal increased by 4.1 per cent year-on-year, the first rise since July 2012, while the metallurgical industry, ferrous and laminate recorded price increases of 10.1 percent over the previous year.

The positive value also can be attributed to the cut in capacity and the reduction of stocks in the country, which reduced the excess supply, and to the recovery in the global market prices of raw materials, such as crude oil, iron ore and non-ferrous metals, added to the statistics.

Factors such as the increase in the prices of coal and steel, making it likely that the IPP will continue to rise in October, and could reach 0.7 per cent increase year-on-year, said the analyst of strategy of Haitong Securities Jiang Chao.

The prime minister of China, Li Keqiang, said Tuesday that the industrial growth of China, corporate profits and investment, especially the private sector, are recovering and stabilizing.

The economy not only remained in the third quarter the pace of growth in the first half of the year, but that introduced some positive changes, said the prime minister, who added that China is perfectly capable of maintaining a pace of growth between medium and high.

The figures of the IPP have been published jointly with the consumer price index, which in September rose 1.9 per cent year-on-year and 0.7 in inter-monthly terms.

related News: