China's Rising CPI, Deepening PPI Deflation Challenges PBOC
- Real borrowing costs for factories higher as deflation deepens
- Rising pork prices are pushing up costs for the staple
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China’s consumer prices rose at the fastest pace in a year as a pork supply crunch drives up the cost of the staple while factory-gate deflation deepened to the worst in almost six years, compounding challenges for policy makers.
The consumer-price index increased 2 percent in August from a year earlier, compared with the 1.8 percent median estimate in a Bloomberg survey. The producer-price index fell 5.9 percent, extending declines to 42 months.