China’s producer prices jumped 6.5% in April from a year earlier on rising costs of imported goods – another sign that the fixed Chinese currency is stoking inflation, Bloomberg reported. "For China, the more quickly yuan appreciation kicks in, the better…Appreciation is needed to absorb higher raw-material import prices, a key driver of China’s producer-price inflation," said Stephen Green, head of China research at Standard Chartered Bank (STAN.LSE, 2888.HK) in Shanghai. Non-deliverable yuan forwards fell 0.6% in Hong Kong yesterday, indicating that investors are betting on a 2.1% increase in the value of the renminbi against the dollar in the next year. China saw its first trade deficit in six years in March as imports rose on domestic demand, a trend that economists surveyed believe will continue in April. Exporters are being squeezed by rising costs of raw materials and labor.