Producer prices accelerated for the second straight month on the back of stronger commodity prices, official data showed over the weekend, taking China’s inflation to a four-month high despite ongoing anxieties surrounding the country’s trade position with the West.
China’s PPI moved up 4.1% year-on-year (y/y), helped by a low base this time last year, speeding up from April’s 3.4%. The figure exceeded a Reuters poll of analysts, which forecast inflation for the month of 3.9% with further acceleration in store for June.
Consumer prices remained unchanged from April’s 1.8% y/y rate, dropping 0.2% on a month-on-month basis. This was kept steady by stable food prices which moved just 0.1% y/y compared with a 0.7% increase in April.
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