Fear of 'Inflation' Hits Both US and China... China's PPI Hits Record High Again

China PPI Up 13.5% Year-on-Year
US CPI Also Forecasted at 5.9%, Highest in 30 Years

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As the inflation indices in both the United States and China show steep increases simultaneously, fears of inflation are spreading across the global economy. Experts warn that the rapid rise in prices is occurring more broadly than expected and shows signs of prolongation, urging preparedness for the possibility of tightening policies by central banks worldwide.

On the 10th, China's National Bureau of Statistics announced that the Producer Price Index (PPI) for October reached 13.5%, setting a record high since statistics began in 1996. This broke the previous record set just last month, marking a new high within a month. This is attributed to the combined effects of recent coal shortages and power supply difficulties. As the producer prices in China, known as the "world's factory," surge, concerns about global inflation are expected to deepen.

China's Consumer Price Index (CPI) rose 1.5% year-on-year, more than doubling the 0.7% increase recorded last month. The market forecast was 1.4%. Bloomberg reported, "The CPI rose at the fastest pace since September last year."

The U.S. Consumer Price Index is also signaling a sharp rise. On the 9th (local time), the U.S. Department of Labor reported that the October PPI increased 8.6% year-on-year, the highest since 2010. Market forecasts ahead of the October CPI release on the 10th predict a 5.9% increase, the highest in 30 years since 1990.

Market experts analyze that the inflation rate, which began rising in April, is showing signs of becoming prolonged, and advise preparing for the possibility of interest rate hikes by central banks in various countries.

Steven Stanley, Chief Economist at Amherst Pierpont Securities in the U.S., said in an interview with CNBC, "Until last spring, the inflation trend in the U.S. was understood as a short-term rise in a few select items, but now most items are rising simultaneously," adding, "If the current trend continues, inflation will persist next year, and the Federal Reserve (Fed) may raise interest rates sooner than expected."

This content was produced with the assistance of AI translation services.