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China Factory-Gate Deflation Deepens on Commodity Price Fall

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China’s factory-gate prices extended a record stretch of declines, with the sharpest drop in two years in December, suggesting room for further monetary easing.

The producer-price index slumped 3.3 percent from a year earlier, the National Bureau of Statistics said in Beijing today, compared with the median projection for a 3.1 percent decline in a survey of analysts by Bloomberg News. The slide has yet to be fully reflected in consumer prices, which rose 1.5 percent, matching the median estimate.