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China’s Factory-Gate Deflation Eases in Capacity-Cut Drive

  • Producer price index fell 2.8%, the least since late 2014
  • Deflationary threat ‘has substantially diminished,’ ANZ says
Bloomberg business news

China CPI Inflation Eases to 2.0%

Updated on

Deflationary pressures in China’s industries eased further in May, while consumer price gains continued to be subdued enough to offer the central bank scope for more easing if needed.

Amid a drive by the Communist Party leadership to cut excess capacity, producer prices fell 2.8 percent, the least since late 2014 and less than the 3.2 percent decline economists had estimated in a Bloomberg survey. The consumer price index rose 2 percent from a year earlier, less than the median forecast of 2.2 percent.