China wholesale inflation hits over four-year high as consumer measure slows

China’s producer price inflation accelerated to a more than four-year high in October, while consumer inflation slowed. The contrasting figures suggest that rising costs for producers have not translated into stronger overall price growth for households.

Producer prices rose 5.7% year on year, above economists’ 5.3% forecast and up for a third consecutive month, driven by mining and raw materials. Consumer inflation eased to 0.7% from 0.9% in September, below the 0.8% forecast, while core inflation fell to 0.8% from 1%. Higher gasoline prices supported consumer prices, but a sharper fall in food prices offset some of that increase; the CSI 300 rose 0.56% after the data.