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© 2021 AFPChina's factory inflation hits 25-year high in September
By Beiyi SEOW BEIJING©2024 GPlusMedia Inc.
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© 2021 AFP
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Skeptical
A little more was reported.
As officially reported by the National Bureau of Statistics of China, about 20 hours ago:
China's producer prices increased by 10.7% YOY in September 2021, beating market expectations of a 10.5% rise and August's figure of a 9.5% gain. This was the ninth straight month of increase in factory gate prices and the strongest growth at least since the data began to be reported in October 1996, amid surging cost of raw materials. Prices of means of production rose faster (14.2% vs 12.7% in August), led by extraction (49.4% vs 41.8%), raw materials (20.4% vs 18.3 %), and processing (8.9% vs 8%). At the same time, prices of consumer goods also advance more (0.4% vs 0.3%), with cost accelerating for both daily use goods (0.4% vs 0.1%) and clothing (0.4% after being flat in August) while recovering for consumer durables (0.2% vs -0.1%). Meantime, prices of food production continued to increase (0.7% vs 0.9%). On a monthly basis, producer prices went up 1.2 percent.
quercetum
The United States is printing extraordinary amounts of money triggering the commodity prices to shoot up (when there is a plenty of money, the value of the money decreases. so, the prices of commodities go up accordingly to compensate.)
If the monetarist theory is correct, then by controlling the money supply, everything else will rebalance. China and its brand of authoritarian capitalism will offer more for the Keynesian side of the debate on economics.
Kaerimashita
Inflation soon going to be out of control as central banks in many countries are unable to manage it by raising rates or whatever. some countries already see it coming and are trying to head it off.
JeffLee
Monetarist theory is incorrect. Money supply has growth vastly in the last couple of decades in major economies, while inflation has remained low, in Japan even negative. The theory isn't just wrong, it's beyond wrong.
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quercetum
Case in point Japan.