KONTAN.CO.ID - BEIJING. China's factory gate prices fell at a faster-than-expected pace in September and consumer inflation slowed to its weakest in 19 months, underscoring the challenges still facing China as it recovers from the COVID-19 pandemic.
The producer price index (PPI) fell for an eighth straight month on an annual basis while consumer prices grew more slowly than expected.
The world's second largest economy has seen a steady recovery after being hard hit by the coronavirus in the first quarter. But a sustained fall in producer prices, seen as a gauge of industrial demand, may rekindle worries about deflation and prompt authorities to provide more support, analysts said.