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China factory gate inflation threatens to push up consumer prices

PPI increase of 9% in May could squeeze corporate profits and slow growth

Prices for steel, coal, iron ore, copper and other commodities have surged this year, pushing up the PPI.   © Reuters

TOKYO -- The prices of goods leaving factories in China rose at their fastest pace in 13 years, raising concerns that costs will soon be passed onto consumers.

China's producer price index rose 9% in May from a year earlier, faster than the market consensus and the 6.8% increase the previous months, the National Bureau of Statistics reported on Wednesday. The figure is the highest since September 2008.

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