NewsHK
China's wholesale inflation climbed to its highest level in nearly four years in May, driven by a surge in global commodity costs as the Middle East conflict involving Iran disrupted energy and raw material supply chains.
Consumer prices, however, missed forecasts, leaving manufacturers caught between rising input costs and tepid domestic demand. A Supply Shock With Two Engines The jump in wholesale prices had two distinct accelerants.
The first was the disruption to energy and raw material flows stemming from the conflict in the Middle East.
When those supply lines tighten, Chinese factories — among the world's largest consumers of industrial inputs — absorb the price increase before it can be passed along to consumers.
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