China Producer Prices in Deflation for First Time Since 2020

(Bloomberg) — China’s producer prices fell into deflation for the first time in nearly two years as global commodity prices slid and restrictions to control Covid outbreaks dragged on demand, a further sign of the challenges facing companies already under pressure from the economic downturn.

The producer price index (PPI) declined 1.3% in October from a year earlier after gaining 0.9% the previous month, the National Bureau of Statistics (NBS) said Wednesday, the first fall in the gauge since December 2020.