China PPI Up 2.8% in April, Ends Deflation Streak

China's producer prices surged to their highest level in nearly two years in April, signaling the end of a prolonged deflationary period, while consumer inflation also exceeded forecasts amid elevated global energy costs.

The National Bureau of Statistics reported Monday that the producer price index rose 2.8 percent year-on-year, surpassing economist estimates that ranged from 1.5 percent to 1.9 percent. This marked the fastest increase since July 2022 and followed a 0.5 percent gain in March, reversing a 41-month streak of declines that began in late 2022. The consumer price index climbed 1.2 percent year-on-year, above expectations of 0.8 percent to 1.0 percent and up from 1.0 percent in March. Core consumer prices, excluding food and fuel, increased around 1.1 percent to 1.2 percent.

NBS statistician Dong Lijuan attributed the producer price acceleration to rising international commodity prices, stronger demand in select domestic sectors and improved market competition. Sectors such as nonferrous metals mining, crude oil processing, chemical materials and electrical machinery contributed significantly, with nonferrous metals alone accounting for nearly 1.6 percentage points...