China's PPI continues monthly rise on higher energy prices

BEIJING, Nov. 9 (Xinhua) -- China's producer price index (PPI) continued to rise month on month in October, mainly driven by higher energy prices, although the pace of growth moderated from September, official data showed Monday.

The PPI, which measures costs for goods at the factory gate, rose 0.7 percent month on month, with the growth rate narrowing by 0.5 percentage points from September, according to the National Bureau of Statistics (NBS).

Higher international energy prices, seasonal demand for heating fuels, and growing demand from artificial intelligence (AI) drove up prices in certain sectors, NBS statistician Dong Lijuan said.

In the energy sector, rising international prices pushed up domestic prices in petroleum and natural gas extraction and coal mining and washing by 6 percent and 2.7 percent, respectively, from the previous month.

Driven by higher upstream energy costs and stronger demand for coal and natural gas ahead of the winter heating season, prices in refined petroleum product manufacturing and organic chemical raw material manufacturing both rose 6.8 percent, while those in coal processing, as well as gas production and supply increased 3.2 percent and 1.5 percent, respectively.

Together, the six industries contributed approximately 0.61 percentage points to the monthly PPI increase, accounting for more than 80 percent of the overall rise.

Meanwhile, orderly capacity adjustments improved supply-demand conditions in some industries. Prices in non-metallic mineral products manufacturing rose 0.8 percent, while those in automobile manufacturing remained unchanged after three consecutive months of declines.

Rapid AI development also boosted demand and prices in related manufacturing sectors. Prices in electrical machinery and equipment manufacturing, and computer, communications and other electronic equipment manufacturing both edged up 0.1 percent.

Consumer goods manufacturing prices remained broadly stable amid ample supply and steady demand.

Prices in the textile industry and the agricultural and sideline products processing rose 0.2 percent and 0.1 percent, respectively, while those in paper and paper products manufacturing, and liquor, beverage and refined tea manufacturing fell 0.4 percent and 0.1 percent. Prices in furniture manufacturing and tobacco products manufacturing remained unchanged.