Chinese shares have fallen to their lowest level for 19 months, rattled by fears about inflation.
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Berlin unveils 'crewed spaceship' ... prices jumped 10% in July from a year earlier, the highest rate in 12 years, official data showed.
The data sent the Shanghai Composite tumbling 5.2% to close at 2,470 points, down 60% from last October's peak.
Investors are concerned that rising inflation combined with the prospect of slower economic growth will hurt company profits.
Margins squeezed
However, China reported a rise in its trade surplus, which swelled to its highest level in eight months in July, despite the economic slowdown hitting many of its customers overseas.
The 10% rise in China's producer price index, which measures the price of goods as they leave the factory, was up sharply from June's rate of 8.8%.
The rise was primarily due to rising energy costs, with crude oil costing 41.2% more than a year ago and a 32.6% rise in the cost of petrol.
"Producers' profit margins are being squeezed sharply and even though tough market competition will delay the pass-through to retail prices, it will happen eventually," said Xing Zhiqiang, an economist at China International Corp.
(BBC)
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