BEIJING—China’s consumer prices slipped into deflationary territory last month in year-over-year terms, while the country’s factory-gate prices began to reflate after 11 straight months of decline.

China’s producer-price index returned to inflation at the start of the year by rising 0.3% in January from a year earlier, compared with a 0.4% fall year-over-year in December.

Chinese producer prices began falling a year ago as the coronavirus pandemic ravaged first the domestic economy and then other parts of the world. Demand and production in the industrial sector were both weighed down, hitting commodity prices.

Now, driven by improved domestic demand and rising prices for crude oil, iron ore and other raw materials, Chinese producer prices rose 1.0% in January compared with a month earlier, China’s National Bureau of Statistics said Wednesday.

With industrial production and demand continuing to improve, China’s producer-price index will likely remain in positive territory for the rest of the year, said Zhang Ning, an economist at UBS.

This post first appeared on wsj.com

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Kevin Mayer, Ex-TikTok CEO, Joins Investment Firm Founded By Billionaire Len Blavatnik

Kevin Mayer, who had a short-lived stint as chief executive at TikTok…

Russia accuses Wagner chief of ‘armed mutiny’

IE 11 is not supported. For an optimal experience visit our site…

New York City Mayor Eric Adams accused of sexually assaulting a colleague in 1993

New York City Mayor Eric Adams has been accused of sexually assaulting…

Abbott Names New Leadership at Troubled Baby-Formula Plant

Health Company had halted work at Sturgis, Mich., site and now plans…