China's factory inflation slows as production eases but food prices surge

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China's factory inflation slows as production eases but food prices surge
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China's factory gate inflation slowed amid sluggish commodity demand and fa...

BEIJING - China’s factory gate inflation slowed amid sluggish commodity demand and faltering manufacturing activity, slowing from a four-month high in the previous month and fuelling worries growth in the world’s second-largest economy is slipping.

China’s producer price index in May rose 0.6% year-on-year, the National Bureau of Statistics said in a statement on Wednesday, in line with analyst expectations and compared with a 0.9% uptick in April. China’s May exports unexpectedly returned to modest growth in May but imports fell at the sharpest rate in nearly three years, adding to uncertainties.Price gains in oil and natural gas extraction, coal processing and ferrous metals eased last month.

China’s copper imports, a widely-used building material and a key gauge of economic demand, sank 10.9% in May from the previous month, reversing the gain seen in April.

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