Baku:Producer prices in China surged 5% year-on-year in September, marking their fastest increase since June 2022, primarily due to higher fuel costs, as reported by the National Bureau of Statistics on Wednesday.

According to Anadolu Agency, this rise in the producer price index was an acceleration from the 3.8% increase recorded in August. The bureau also noted that coal prices experienced an uptick due to stronger demand for winter heating, temporary supply constraints in major coal-producing regions, and anticipated increases in international coal prices.

Consumer inflation saw a slight rise to 0.9% year-on-year in September from 0.8% in August. Gasoline prices increased by 16.6%, adding approximately 0.47 percentage points to the annual consumer inflation rate, stated Dong Lijuan, chief statistician of the bureau's urban division. In contrast, food prices fell by 1.7%, reducing headline inflation by about 0.29 percentage points and somewhat counteracting the impact of rising fuel costs. Core inflation, which excludes volatile food and energy prices, remained at 1%.

The data revealed a growing disparity between producer and consumer inflation, with industrial costs rising more sharply than consumer prices. In the second quarter, China's economy grew by 4.3% year-on-year, the slowest pace in over three years. August's figures indicated weaker retail sales growth than expected, although industrial output performed better than anticipated.

The State Council indicated potential additional economic support during a meeting on September 28, emphasizing the need for more robust countercyclical macroeconomic policy adjustments to address emerging challenges. Lynn Song, chief economist for Greater China at ING, highlighted in a research note that the meeting represented a shift in tone, suggesting likely further policy support to achieve both short- and long-term growth targets. These targets include China's 4.5%-5% economic growth aim for 2026 and its long-term goal of doubling GDP from 2020 to 2035.