Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
PPI grows at slowest pace since April 2006
Adjust font size:

China's Producer Price Index, the yardstick of factory-gate inflation, grew at the slowest pace in more than two years in November, reflecting a moderating economy, the National Bureau of Statistics said today.

PPI growth slowed to 2 percent last month, retreating from an increase of 6.6 percent in October and recording the weakest growth since April 2006.

Don't Miss:

China: Stocks fall | FDI declines | IPO drops
NDRC explains stimulus measures
WB report: Global recession in 2009
Feature: Crisis even chills junk collectors
EU, US to respond economic crisis
US auto bailout deal reached in principle
Full Coverage: Global Financial Crisis
 

The sharp withdrawal was due to falling energy and commodities costs on the international market and declining production demand, analysts said.

"The abrupt slowdown in the PPI is a bit surprising. It indicates a sharp decline in short-term demand. But looking ahead, such big fluctuations usually indicate the bottom of economic adjustment. For China, it could occur in the first quarter of next year. And then we can expect demand to increase," said Li Maoyu, an analyst with Changjiang Securities Co.

Li predicted PPI growth would be between 5 and 6 percent in November. He predicted the CPI may expand at a pace below 3 percent from October's 4-percent advance.

The PPI grew 7.6 percent in the first eleven months from a year earlier. It was at a 12-year high of 10.1 percent in August.

Last month, the price of crude oil from Chinese factories dropped 14.7 percent on an annual basis, sliding from a 41.2-percent hike in July, when global oil prices were more than US$140 a barrel. International crude prices have slumped to below US$50 a barrel since then.

The costs of other raw materials also registered decreases. The prices of nonferrous metals were 19.4 percent lower than a year earlier and durable consumption goods were 0.5 percent lower.

(Shanghai Daily December 10, 2008)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- China PPI falls to 6.6% in October
- Producer Price Index (PPI) (Jan-Oct)
- Analysts expect CPI, PPI to fall in September
- China's CPI projected to slide further
- China CPI eases to 4% in October
- Chief economist: China's CPI continues to drop
- Consumer Price Index (CPI) (Jan-Oct)
- China's CPI rises 4.6% in September

Dec. 12 Beijing Caijing Annual Conference 2009
Dec. 13-14 Guangzhou Enterprise Development Forum
Dec. 20-21 Beijing 7th China Import & Export Enterprises Conference(CIEEC)

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?