BEIJING, June 11 (UPI) -- China's fight to tame inflation got tougher with a report Wednesday saying the producer price index for May rose 8.2 percent from year-ago levels.
The May wholesale inflation, announced by the National Bureau of Statistics, was higher than the 8.1 percent reported for April. PPI measures the value of ex-factory finished products and is an indicator of the consumer price index, the key measure of inflation.
The May PPI number, blamed on soaring energy and raw materials prices, was the highest in more than three years. It may result in additional regulatory tightening measure, the China Daily reported.
The NBS said factory prices of raw materials, fuel and power rose 11.8 percent in May compared to the same month of last year.
Crude prices were up 30.9 percent in May, gasoline was up 11 percent, diesel 11.8 percent and kerosene 11.4 percent, Xinhua reported.
Analysts fear the higher ex-factory prices could bump the CPI up as the prices are passed on to consumers.
The government, battling on several fronts to keep its economy on track, is trying to bring down inflation, currently over 8 percent against a target of 4.8 this year.
