The producer price index in China rose to 3.8% over the past month, indicating that the cost of finished products has increased for manufacturing and industrial enterprises in the country.

In a report, China’s National Bureau of Statistics stated that prices of non-ferrous metals in the smelting and processing sector increased by nearly 21% compared with last year. It added that then followed oil refining, coal and fuel with 11%, and oil and gas extraction with 10.5% growth, which together accounted for the largest share of changes in the producer price index.

Reuters writes that the driving force behind the rise in China’s producer price index is the risk of energy exports from the Middle East due to disruptions by the Islamic Republic in the Strait of Hormuz, and consequently a significant increase in energy prices in global markets.