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Topic-icon When the cost of production "China" peaks in 26 years

The energy crisis in "China" has been resolved. But SLOTXO commodity shortages and production disruptions continue to affect. Chinese manufacturers face higher production costs. This may result in higher prices of Chinese products and a burden for consumers to bear.

Reuters reported that China's producer price index (PPI) in October rose about 13.5 percent from October 2020 and above 10.7 percent in September 2021, according to the National Bureau of Statistics. This is the highest producer price index in 26 years, reflecting inflationary pressure from production costs.

This was mainly due to higher coal prices amid the energy crisis in China's key industrial zone. The cost of the coal industry is up 103.7 percent from 2021, while the cost of oil and natural gas extraction has also jumped 59.7 percent.

The costs of these upstream industries result in higher commodity prices. especially metal products and is likely to spread to other groups especially consumer products that need to increase prices This will put pressure on manufacturers' profit margins and may affect consumers.

China's consumer price index (CPI), or "inflation" in October, rose 1.5% from 2020 and exceeded 0.7% in September 2021. Levels have risen by leaps and bounds. Although not as fast as the Producer Price Index.

Zhang Zhiwei, chief economist at investment firm Pinpoint Asset Management, said the pass-through of producer costs to consumer prices is likely to increase in the coming months.

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