China’s factory-gate prices rise at the fastest pace since the pandemic, as the
Iran war drives up global costs. Producer prices increased 2.8% in April from a
year earlier, up from 0.5% in March and above the 1.8% consensus, according to
the National Bureau of Statistics. Consumer inflation also rose unexpectedly to
1.2% from 1%. The yuan gained up to 0.2% past 6.8 per dollar, while long-dated
bond futures fell. Officials cited higher commodity prices and stronger domestic
demand, but weak consumption and rising input costs are squeezing corporate
margins, with the purchase price index rising 3.5%, the widest gap with selling
prices since August 2024.
