The price of copper surged to a record high after a raft of data demonstrated unexpectedly strong growth in China, the world’s largest consumer of the metal.

The benchmark copper contract on the London Metal Exchange jumped 2.5 per cent to a nominal record of $8,966 a tonne, surpassing the 2008’s $8,940.

Copper’s widespread use in manufacturing and construction makes it a key cog in the global economy and its price has risen nearly 50 per cent since June as resurgent demand has been met by sluggish supply growth from the world’s ageing copper mines.

The sharply rising price of copper and other basic industrial commodities is driving higher inflation, especially in emerging economies where growth is strongest.

Rubber prices have quadrupled in two years to hit a record $4.50 a kg on Thursday, while iron ore is trading above $160 a tonne for the first time in six months.

On Thursday China reported that its consumer price inflation had jumped to a two-year high of 4.4 per cent in October from 3.6 per cent the previous month, while industrial production and retail sales were also strong.

Traders said that Chinese buyers had been covering their short positions in recent days as they gave up waiting for a dip in prices. Trading volumes in China soared on Thursday, and the copper price in Shanghai rose 3.6 per cent, outperforming the London market.

Yang Liang, a copper trader at Minmetals, the Chinese state-owned metals producer and trading company, said the copper market was “very hot”.

But he added that there was no shortage of metal in China. “There is plenty of material in the market, especially in bonded warehouses, but now the problem is the US dollar; it is monetary policy.”

Chinese consumers – who now account for about 40 per cent of global copper demand – have been largely absent from the market in recent months, put off by high prices; but when they return and buy, senior traders and industry executives expect copper prices to accelerate to $10,000 or $11,000 a tonne.

Analysts expect demand to outstrip supply by more than 400,000 tonnes next year, and stocks of the metal have been drawn down as mine supply disappoints. A strike at Collahuasi, the world’s third largest copper mine, has raised concerns of further losses to output.