China's Producer Inflation Regains Momentum in August, Consumer Prices Also Rise

China's factory-gate inflation, as measured by the Producer Price Index (PPI), increased by 3.8% year-on-year in August, accelerating from 3.5% in July and surpassing forecasts of 3.6%. Concurrently, the Consumer Price Index (CPI) rose 0.8% year-on-year, up from 0.5% in July and matching expectations. On a monthly basis, CPI increased 0.4%, against a 0.1% decline in July. These figures indicate a pickup in inflationary pressures, partly attributed to elevated energy prices due to Middle East conflict-related supply risks and maritime disruptions.