BEIJING (Reuters) – China’s factory gate inflation slowed amid sluggish commodity demand and faltering manufacturing activity, slowing from a four-month high in the previous month and fuelling worries growth in the world’s second-largest economy is slipping.
Consumer prices, however, soared at their fastest pace in over a year, driven by elevated prices of pork and fruit due to supply issues stemming from the outbreak of African swine fever and poor weather conditions.
China - Producer - Price - Index - PPI
China’s producer price index (PPI) in May rose 0.6% year-on-year, the National Bureau of Statistics (NBS) said in a statement on Wednesday, in line with analyst expectations and compared with a 0.9% uptick in April.
Producer inflation gauges in China, closely tracked by analysts and investors, are seen as bellwethers of industrial demand in the economy.
Trade - War - Washington - Beijing - Intensifies
As the trade war between Washington and Beijing intensifies, investors and analysts are increasingly concerned the dispute could trigger a global recession.
China’s May exports unexpectedly returned to modest growth in May but imports fell at the sharpest rate in nearly three years, adding to uncertainties.
Slowdown - Producer - Price - Inflation - Line
The slowdown in producer price inflation was in line with downbeat factory activity seen in May.
Price gains in oil and natural gas extraction, coal processing and ferrous metals eased last month.
Wake Up To Breaking News!