Factory Gate Prices See First Fall In Nearly 2 Years

China's factory gate prices for October dropped for the first time since December 2020, as falling global commodity prices made their mark on the nation’s economy.

The producer price index (PPI) fell 1.3 percent year-on-year, reversing from a 0.9 percent gain a month earlier, National Bureau of Statistics (NBS) data showed on Wednesday.

"In October, demand in some industries rose, and the national PPI rose slightly month-on-month," said NBS statistician Dong Lijuan.

"But owing to the high comparison base from the same period last year, the year-on-year figure went from growth into decline."

Prices in coal mining and washing industry were down 16.5 percent, deepening from a 2.7 percent drop in the previous month, while those in ferrous metal smelting and rolling processing slumped 21.1 percent after decline 18 percent in September.

The consumer price index – the main gauge for retail inflation – climbed 2.1 percent from a year earlier, easing from a 29-month high of a 2.8 percent increase in September, mainly driven by falling food prices. It was also slower than the 2.4 percent forecast by analysts.

Mainland consumers have been largely spared the impact of a global surge in food and energy costs following Russia's military offensive in Ukraine.

"Under the impact of factors including a drop in consumer demand after the [National Day] holiday and last year's high base of comparison, the rise in consumer prices somewhat fell back," Dong said. (AFP/Reuters)