A surge in commodity prices saw China’s producer price index jump 9% in May from last year, the highest since September 2008, CNBC reports.

The gains in the producer price index were higher than the expected increase of 8.5%.

Prices of petroleum and natural gas almost doubled in May, while those of coal, oil, and other fuel processors jumped by 34.3%. The consumer price index surged 1.3% year over year, less than the expected increase of 1.6%

Chinese companies expect sharp rises in raw materials costs which they see persisting to the end of the year. Business sentiment has remained unchanged in the first quarter from prior, but the proportion of Chinese companies posting gross margins of below 15% has risen to about 70%. 

USDCNY is down 0.23%, CSI 300 is up 0.083%.