China Factory Deflation Eases Despite Drag on Prices From Demand

China’s factory deflation eased more than expected in January thanks mostly to a global metals rally, even as weak demand at home restrains a more sustainable turnaround in prices.

The producer-price index fell 1.4% last month from a year earlier, their smallest decline since July 2024, according to data released by the National Bureau of Statistics on Wednesday. Consumer inflation slowed for the first time since August because of base effects and grew just 0.2%, after a 0.8% rise in December.