China Mulls Price Caps on Coal in Campaign to Tame Inflation
- Producer inflation in May soared to its highest since 2008
- Risk of coal supply squeeze ahead of peak summer demand
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China’s efforts to control raw materials costs could include price limits on its runaway coal market, underscoring the government’s tough stance on taming inflation.
Beijing is considering imposing a cap on the price of thermal coal as it struggles to contain stubbornly high energy costs ahead of peak demand over the summer. The move would be the latest in a largely successful campaign across commodities that began in April to prevent inflationary pressures harming the economy.