Reuters reports that China's factory gate prices rose at their fastest annual pace in over 12 years in May, driven by surging commodity prices, highlighting global inflation pressures at a time when policymakers are trying to revitalise COVID-hit growth.

China's producer price index (PPI) increased 9.0%, as prices bounced back from last year's pandemic lows. The PPI rise was driven by significant price increases in crude oil, iron ore and non-ferrous metals, the NBS said. Analysts had expected the PPI to rise 8.5% after a 6.8% increase in April.

On a monthly basis, the PPI rose 1.6%, up from a 0.9% uptick in April.

Prices for commodities including coal, steel, iron ore and copper, which affect the PPI, have surged this year, fuelled by post-lockdown recoveries in demand and ample global liquidity.

NBS data also showed China's consumer price index (CPI) rose 1.3% in May in annual terms, up from a 0.9% gain in April but lower than the 1.6% forecast.

Food inflation rose 0.3% in May from a year earlier on higher prices for freshwater fish and eggs, despite still falling pork prices. That compared with a 0.7% drop in food prices in April.

Non-food prices, including airfares, gasoline and diesel prices, accelerated to 5.5%, likely bolstered by China's Labour Day Holiday at the start of May.