Economics
China Factory Prices Drop as Consumer Gains Hand PBOC Headache
- Producer price index contracts for first time since 2016
- Food prices drive up CPI index closer to China’s 3% ceiling
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China’s producer price index fell for the first time in nearly three years while consumer price growth accelerated, complicating the People’s Bank of China’s efforts to support the economy.
Factory prices fell 0.3% in July from a year earlier, a bigger decline than the median estimate of -0.1% by economists. The consumer price index rose 2.8% year-on-year, faster than forecast, according to data released by the National Bureau of Statistics on Friday.