China PPI marks record rise

China's producer price index saw a record rise in September on soaring prices of coal, crude oil, metals and other raw materials.

The National Bureau of Statistics says the PPI jumped 10.7 percent last month from a year earlier.

The rise was the steepest since data began to be released in October 1996.

The index measures price fluctuations of goods at the factory gate.

Power shortages caused by more expensive coal hampered factory operations, also pushing up prices paid by producers.

Meanwhile, consumers experienced only slight inflation during the same period. The consumer price index was up 0.7 percent.

A reluctance among manufacturers to pass on their higher raw material costs to their customers is believed to explain the large difference in the inflation rates.

Analysts say that trend may worsen China's economic slowdown by putting more pressure on businesses.