PPI cools again as iron, coal slide; CPI rises

Source:Reuters Published: 2017/5/10 22:50:25

Producer price inflation cooled for a second straight month in China during April as iron ore and coal prices tumbled further, pressured by fears that domestic demand won't absorb surging supplies of steel.

The Producer Price Index (PPI) rose 6.4 percent from a year earlier, missing economists' expectations for a 6.9 percent rise and easing from the previous month's gain of 7.6 percent.

In March, China's PPI cooled for the first time in seven months as iron ore and coal prices tumbled after rising sharply on a construction boom that drove China's strongest economic growth since 2015.

The Consumer Price Index (CPI) rose 1.2 percent, edging up from 0.9 percent in March and exceeding analysts' forecasts, the National Bureau of Statistics said on Wednesday.

Analysts had forecast the April CPI would be 1.1 percent but remain well within the central bank's comfort zone, giving policymakers scope to continue with a gradual pace of monetary policy tightening without hurting economic growth.



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