Data released Wednesday by China’s National Bureau of Statistics (NBS) indicates that factory-gate price growth accelerated to 3.8% year-on-year in August, rising from 3.5% in July. This figure surpassed the 3.6% growth projection previously estimated by economists surveyed by Wind, a financial data provider.

Analysts attribute this upward pressure primarily to volatility in global energy and commodity markets, which have been impacted by ongoing geopolitical tensions, specifically the conflict involving the US, Israel, and Iran. While the producer price index reflects the costs faced by manufacturers, the report also noted a concurrent rise in national consumer inflation. The data suggests that Chinese manufacturers are currently navigating a more expensive input environment, which may eventually influence the final prices paid by consumers if these trends persist.