Rising energy prices pushed up producer price index (PPI) in July to 10 percent year-on-year, the highest since 1996 when data were first recorded.

The new PPI, which rose 8.8 percent in June, has continued its spiraling ascent since last October, according to the National Bureau of Statistics.

The PPI, the main gauge of factory gate inflation, is likely to further squeeze the profit margin of domestic enterprises that are already struggling to cope with a global slowdown, analysts said.