China's factory-gate prices grew at fastest pace in over 12 years in May driven by commodity rally, consumer inflation lower than expected

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Factory-gate prices in China grew at the fastest pace in more than 12 years in May as manufacturers passed on the surging material prices, piling pressure on policymakers as they grapple with the effects of a commodity price rally.

The producer price index (PPI), which reflects the prices that factories charge wholesalers for their products, surged by 9 per cent in May from a year earlier, accelerating from a gain of 6.8 per cent in the previous month, showed data released by the National Bureau of Statistics (NBS) on Wednesday.

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