Producer prices up

16 July 2004

Latest government data showed producer prices increased at their fastest rate in the 12 months to June. Prices of goods leaving the factory were 6.4% higher last month than a year earlier. In May, prices were 5.7% higher than in May 2003. Despite the acceleration, analysts said inflationary pressures were easing. Shanghai Securities News said raw materials had jumped 11.8% along with fuel prices, suggesting manufacturers were trying to hold prices down as best they could.