China’s Producer Deflation Worsens as Weak Demand Persists

China’s producer prices fell the most in nearly two years, overshadowing a modest improvement in consumer prices and adding to the urgency to tackle deflationary pressures.

Factory deflation persisted into a 33rd month, with the producer price index falling 3.6% from a year earlier, the National Bureau of Statistics said Wednesday. The decline was the most since July 2023 and sharper than any economists had forecast.