China October factory prices ascend more than forecast
In October, China's producer prices leapt more than expected as prices of coal as well as other raw materials soared in the midst of a supply crunch, not to mention a pickup in the economy.
Consumer prices beat expectations too, accelerating to a six-month peak, although analysts stress that the room for further rises is quite limited.
Experts hope that producer price inflation is going to recover further in the nearer quarters and it will top out at a little over 4% just before dropping back again.
The scope for further surged in consumer price inflation will probably be more limited especially considering that credit growth has started to slow, and house prices are currently cooling, while farmers have already responded to high pork prices by spurring pig supply.
With producer prices pulling out of almost five years of deflation and the economy demonstrating broad signs of stabilization, pressure on Beijing back growth has eased, with the policy focus shifting to controlling asset bubbles as well as other risks.