China’s Factory Prices Ease as Commodity Market Surge Abates

China’s producer price gains slowed more than expected in April, adding to signs of a potential easing of global reflation fueled by the world’s second-largest economy.

Resurgent producer prices, which rose the most in eight years in February, have helped fuel the world’s shift away from deflationary pressures and their recent easing signals that the boost may not endure for much longer. Moderated inflation also means stronger industrial profits may be harder to sustain and suggests corporate debt burdens may grow heavier.