Skip to content
Subscriber Only

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
Updated on

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.