China Sees First Factory-Gate Inflation in Almost Five Years
- PPI rose 0.1% from year earlier, first gain since January 2012
- CPI accelerates in sign domestic demand is holding firm
China PPI Rose for First Time Since 2012
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China’s factory-gate prices rose for the first time since 2012, relieving a source of global disinflationary pressure and indicating further stabilization in the world’s second-largest economy.
Years of deflation for China’s factories has abated as global commodity prices recover and domestic demand stabilizes on the back of past stimulus. Given a close link between the country’s factory-gate costs and its export prices, the swing to positive may ease disinflationary pressures in Europe, the U.S. and other big buyers of China’s wares.