Key insights
- China's PPI turned positive for the first time in over three years, signaling rising factory-gate prices potentially linked to Middle East tensions and import costs. While China's CPI increased, it was less than expected. The positive PPI could indicate increased demand and potential inflationary pressures globally, indirectly influencing US equities through global economic conditions and supply chain dynamics.
BEIJING, April 10 (Reuters) - China’s factory-gate prices in March turned positive for the first time in more than three years, official data showed on Friday, pointing to rising import cost pressures linked to the Middle East crisis.
The producer price index (PPI) increased 0.5% from a year earlier, according to data from the National Bureau of Statistics, ending a 41-month streak of declines. The reading beat an estimated 0.4% gain in a Reuters poll.
The consumer price index (CPI) ticked up 1% year-on-year, slower than a 1.3% rise in February. Economists polled by Reuters had expected prices to climb 1.2%.
On a monthly basis, CPI fell 0.7%, below expectations for a 0.2% decline and compared with a 1% rise in February.