Supported by China’s economic recovery, commodity prices have risen, driving the prices of Chinese factory goods to rise at the fastest rate in more than three years.

The producer price index increased by 6.8% year-on-year in April, exceeding economists’ expectations and exceeding the 4.4% increase in March.

Compared with the low base figure at the beginning of the pandemic last year, part of the reason is the increase in this rate.But it also reflects Global raw material prices soar It was originally caused by China and now includes the expectation of restoring global demand.

Although China’s PPI prices have soared, economists believe that the spillover effect on consumer prices is limited, and the central bank is unlikely to respond. The National Bureau of Statistics said on Tuesday that China’s consumer price index rose by only 0.9% in April, even though the index hit a seven-month high.

Larry Hu, head of Macquarie’s Greater China economy, told the PPI data: “This tells us that the current demand is very strong.” Although he advised policymakers to view this growth as ” Temporary” and “review”.

He added: “We will see some reinflationary trends.”

Signs of tightening credit conditions in China have attracted the attention of global investors, as the global economy has recovered from the pandemic, especially in the United States, where consumer price data was released on Wednesday, and the global inflation rate is relatively high.

For most of 2020 after the outbreak of the coronavirus, China’s PPI index remained negative, but This year has begun to build momentum. In the last quarter of 2020, China’s gross domestic product (GDP) growth has returned to pre-pandemic levels.

China’s industrial frenzy has stimulated demand for commodities such as oil, copper and iron ore, which form an important part of the index and help push it higher.

Chinese policymakers have turned Tighten credit conditionsAnd try to control the steel industry. Ting Lu, Nomura’s chief China economist, said that the relevant question now is: “Whether the rapid increase in raw material prices will weaken actual demand in the context of scheduled credit growth.”

China’s retail sales have fallen behind the growth rate of industrial production, which has put downward pressure on the CPI, and the decline in CPI has also been weakened by the decline in pork prices, which has risen sharply under the impetus of African swine fever. Excluding food and energy, the core CPI rose by 0.7% in April

Julian Pritchard-Evans, senior China economist at Capital Economics, said that producer prices are supporting a rebound in consumer prices, but also hinted at pressure from the former. “It may be mostly temporary.”

He added that the export prices of durable consumer goods are rising at the fastest rate in history.

The development of China’s industry has driven China’s rapid recovery. The industrial sector has produced a record amount of steel and has entered the construction boom that policymakers are now trying to limit. on Monday, Iron ore prices hit a record high, And copper prices have soared.