China's factory-gate inflation accelerated to its fastest pace in four years in June, highlighting rising cost pressures for manufacturers even as sluggish domestic demand continues to limit their ability to pass on higher prices to consumers, according to official data. Reuters reported that the figures underscore the uneven nature of China's economic recovery, where export-oriented industries benefit from global demand while the domestic economy remains under pressure.
Data released by the National Bureau of Statistics (NBS) showed that the Producer Price Index (PPI) rose 4.1% year-on-year in June, matching market expectations in a Reuters poll and marking the fourth consecutive monthly increase. The reading was the strongest since July 2022 and followed a 3.9% increase recorded in May.
