Chinese exporters have started to increase prices of goods due to the increase of raw material costs and supply chain constraints, according to a report by The Wall Street Journal.
- The Chinese businesses say they plan to raise prices by around 5% to as much as 15% on new orders this summer.
- Prices of raw materials such as chemicals and metals increased from 10% to 30%. Shipping freight rates have also soared some 90% since June 2020, although often paid by clients.
- Higher costs in China could also be attributed to the limitations on fossil fuel consumption, providing difficulties in the production of steel and other sectors. Factory owners and economists also suspect commodity hoarding.
- Increases in prices of Chinese exports add another source of upward pressure on global prices, with analysts concerned that the trillion-dollar stimulus in the U.S. could drive more inflation than anticipated.
- Prices for imports from China to the U.S. rose 1.2% over the past year, the fastest increase since 2012.