The cost of goods leaving the China factories in post highest rate on record, fueling fears about stagflation in the world's second largest economy at a time when it is already grappling with a extreme power crunch and worsening debt problems . The producer price index - which measures costof goods sold to businesses - climbed 10.7% in September from a year ago, government data showed Thursday. This is the fastest increase since 1996, when the government started releasing such data, according to data from Eikon Refinitiv. The spike can be attributed to higher prices for coal and energy-intensive sectors, said Dong Lijuan, senior statistician at China's National Bureau of Statistics, in a press release. Coal prices are reaching records in the country as supplies struggle to keep pace with demand from power plants.