Key facts
- China's factory-gate inflation accelerated in May.
- Rising energy and commodity costs were the primary drivers of this acceleration.
- The ongoing conflict in the Middle East contributed to higher energy and commodity prices.
- A company noted that cost inflation is trending upwards.
- The company's CFO indicated an impact on raw material costs from the Middle East conflict.
China's factory-gate inflation saw an acceleration in May, reaching its fastest rate in four years. This trend is attributed to the persistent conflict in the Middle East, which has continued to drive up energy and commodity costs, directly impacting the prices producers face. A company involved cautioned that cost inflation is trending upwards, with its CFO stating that raw material costs are beginning to be affected by the conflict.