China’s PPI Beats Expectations

China’s producer price index for May rose 9% from a year earlier, against expectations of an increase of 8.5% in a Reuters poll, marking the strongest rise for the index since 2008, when the index rose 9.13% in September.

The country’s consumer price index in May rose 1.3% from a year earlier, less than the 1.6% expected rise in a Reuters poll.

The producer price index in China recorded its peak decline in 2020 during May, as it declined by 3.7%, against expectations of a decline of 3.3%, in the midst of the Corona crisis that engulfed the global economy and is still in the process of recovering from it.

The Producer Price Index determines the rate of inflation experienced by the industrial sector when purchasing goods and services and is believed to be a leading indicator of consumer inflation.