China factory gate, CPI higher than expected as Iran war fuels prices

(Sharecast News) - Chinese consumer prices and factory gate inflation came in hotter than expected last month, driven by the Iran war and holiday spending, according to official figures published on Monday.

The consumer price index rose 1.2% year on year, up from 1% in March and beating expectations of a 0.9% increase.

Travel spending increased due to the Qingming, Labour Day holidays and Spring breaks in various regions of the country.

Meanwhile, the producer price index (PPI) recorded a higher-than-expected year-on-year increase of 2.8% in April, according to the National Bureau of Statistics, and surging to a 45-month high from 0.5% in March.

Domestic energy prices surged 5.7%, contributing an increase of 0.39 percentage points to the month-on-month CPI rise, driven by volatility in global crude oil prices.

Core inflation, which strips out volatile food and energy prices, rose 1.2% year-on-year in April, compared with 1.1% in March and 1.3%.

Reporting by Frank Prenesti for Sharecast.com