China's factory-gate prices rise 3.8% in August amid Iran war energy volatility

China's producer price index (PPI) rose 3.8% year-on-year in August, up from 3.5% in July, according to data from the National Bureau of Statistics (NBS) released on Wednesday. This figure exceeded the 3.6% projection by economists polled by Wind. The acceleration is attributed to rising international prices for crude oil and non-ferrous metals, driven by the US-Israel war on Iran, which fueled energy volatility. Concurrently, the consumer price index (CPI) rebounded to 0.8% year-on-year, after two months of slower growth, compared to July's 0.5% and broadly in line with Wind's projection of 0.78%. Senior NBS statistician Dong Lijuan noted that coal mining prices surged 26.6% year-on-year in August, non-ferrous metal processing rose 20.8%, and oil and gas extraction prices climbed 10.5%. The data reflects the impact of geopolitical tensions on China's domestic industrial and consumer prices.