2017.10.1603:51:00UTC+00China Producer Prices Jump in September

China's producer price inflation suddenly picked up to a six-month peak in September as a construction boom showed no indications of slowing down while a government clampdown on air pollution fueled fears of winter shortages and jumps in commodity prices.

The solid demand for building materials spurred a year-long commodities rally which helps support manufacturing activity and inflation across the globe.

The economy of China is seen to expand seven percent in the second half of 2017, according to the country's central bank governor.

The producer price index increased 6.9 percent in September from the previous year, from 6.3 percent in August, the National Bureau of Statistics said. The gain - the strongest since March - indicates sustained resilience in China's economy and industrial sector profits.

On a month-on-month basis, the PPI climbed 1.0 percent in September.

China's commodity futures prices have fluctuated in recent weeks as the government proceeds towards its environmental clampdown in order to reduce the country's thick winter smog.

Supported by manufacturing and a hot property market, China's economy expanded by a quicker-than-expected 6.9 percent in the first half of this year.

China's consumer price index increased 1.6 percent as expected in September, against 1.8 percent in August and comfortably within Beijing's 2017 target of three percent.

Food prices, the largest component of the consumer price index, dropped 1.4 percent from the previous year. Non-food price inflation quickened to 2.4 percent in September from 2.3 percent in August.