China's factory gate inflation hit a 13-year high in August, driven by blistering gains for raw materials prices.
And despite Beijing's attempts to cool costs, pressure is mounting on manufacturers in the world's second-largest economy.
The producer price index rose 9.5% from a year earlier for the month, the fastest pace since 2008.
China's economy has recovered strongly from last year's slump.
But has been losing steam due to domestic outbreaks and high raw material prices.
As well as tighter property curbs and a campaign to reduce carbon emissions.
Commodity prices have been on a tear in recent months.
And that's hurting the bottom lines of many mid- and downstream factories.
China's coal prices hit a record high this week over supply concerns, as major coal regions started fresh rounds of safety checks..
Prices in the coal sector grew over 57% in August from a year earlier.
Earnings at China's industrial firms have now slowed for five straight months.
Some economist though expect coal and metals prices will likely drop back as construction activity falls amid restrictions on the sector.