China’s factory price jump contrasts with muted consumer inflation

AI Summary

China's factory gate prices surged by 3.9% year-on-year in May, outpacing expectations and marking the highest rise since 2022. Rising oil prices linked to the Iran conflict have contributed to manufacturer price inflation, contrasting with muted consumer inflation.

China’s factory gate prices rose by the most since 2022, surpassing expectations, as higher oil costs stemming from the war in Iran help manufacturers escape years of deflation. The producer price index rose by 3.9 per cent from a year earlier in May, more than the 3.5 per cent forecast of economists surveyed by Wind. Consumer prices rose by 1.2 per cent, the same as in April and below the 1.4 per cent forecast. Manufacturers have raised prices for three months in a row after the conflict in the...