why is china production inflation rising and what effects does it have

Chinese delegates are discussing measures to set in place that will guide china's economy of 2022. they are faced with issues to solve from housing costs, green energy development but the major worry is the production inflation called PPI which has been raising to areas that caused them to worry.

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The PPI is an economic indicator of rising in production costs and all this has been a result of the corona pandemic. as other countries face inflation spikes china faces PPI hikes. this is because China is a major production country and is the only country that faced economic growth in the 2020 corona year. this created a pressure for china to produce for the world creating a shortage in raw materials.

Chinese PPI has an effect on the Australian economy hence the Chinese PPI is directed to the Australian currency AUD. but remember when production is costly, the burden is transferred to the consumer so this is going to be a major driver of other economies' inflation to the roof. China PPI is currently at 12.9% which is 26 years all high.