PPI sparks inflation fears

China's annual producer price index (PPI) rose to 3.2 percent in October from 2.7 percent in September, raising concerns that inflation will continue to remain high and further tightening measures may be in the pipeline.

PPI, a leading indicator for consumer price index (CPI), measures the average change in the prices received by producers for their output, therefore reflecting potential inflationary trends, if any.

The National Bureau of Statistics (NBS) said yesterday that food prices rose strongly in October - 8.6 percent year-on-year.