China's factory inflation risks build as producers pass on costs

China’s inflation risks are building as producers pass on higher costs to consumers, reigniting a debate over whether the central bank has scope to ease monetary policy to support a weakening economy and potentially adding to the pressure on global consumer prices.

The producer price index climbed 13.5 per cent from a year earlier, the fastest pace in 26 years and above economists’ median forecast for a 12.3 per cent gain, data from the National Bureau of Statistics show Wednesday. 

The consumer price index rose 1.5 per cent, the highest since September 2020 and exceeding the projected 1.4