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Production Costs Jump in March

The cost of raw materials jumped 5.1 percent year on year in March, resulting in across-the-board increases in producer prices of industrial products, according to the National Bureau of Statistics. The mining sector saw a rise of 4.2 percent, basic materials surged 5.5 percent and processing industry prices climbed 4.9 percent.

The producer price index of industrial products measures what producers of finished goods charge distributors and retailers.

The price of consumer goods also rose, up 0.9 percent year on year. Food prices leapt 5.3 percent, clothing edged up 0.9 percent and daily commodities increased 1.4 percent. However, the price of consumer durables declined.

The National Bureau of Statistics reports that 32 of the 39 industrial sectors surveyed showed an upward trend in their prices. In ferrous metals, for example, the producer price in mining soared 50.8 percent while that in the smelting and rolling sector jumped 24.4 percent.

March prices for steel products and byproducts continued their ascent. The producer price for ordinary steel shapes was up 28.9 percent from the same period last year. Iron ore leapt 55.5 percent and raw coal climbed 10.9 percent.

Because of the government's decision to allow prices to rise on grain products to benefit farmers, the overall producer price of agricultural and related products jumped 14.4 percent.

(China.org.cn by Wang Ruyue, April 29, 2004)

Strong Demand Pushes Up Industrial Prices
Agricultural Prices Continue Rising
Soaring Raw Material Cost Propels Industrial Price
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