BEIJING, Dec 10: China’s producer or wholesale prices picked up in November, the latest indicator that inflation is rising fast in the world’s fourth largest economy. The producer price index rose 4.6pc last month from a year earlier, compared with a 3.2 per cent rise in October, the National Bureau of Statistics said in a statement.

The data came as China’s leadership underscores its concerns about an economy that continues to grow too fast and as inflation has picked up speed over recent months.

In the 11 months to November the producer price index or factory gate prices rose 2.9 per cent year-on-year, according to data released by the bureau.

China’s government last week announced it would be a priority in the coming year to prevent overheating and curb inflation, while controlling lending.

On Saturday the central bank raised the bank reserve ratio for the 10th time this year, an action that aims to slow the pace of lending and curb inflation.

China has also raised interest rates five times this year and further hikes are expected.

At a conference in Beijing on Monday, Liu Mingkang, chairman of the China Banking Regulatory Commission, said price growth had been structural and cyclical, and was driven mainly by rising food and oil prices.

“Rapid asset price growth and excess liquidity remain the two chief problems. The central government will continue to announce measures to resolve them,” he said.

Liu said he expects inflation to exceed 4.4 per cent for the year.

In the first 10 months, China’s consumer inflation index grew by 4.4 per cent, while in October it soared 6.5 per cent to its highest level in a decade.—AFP