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China's July PPI falls for first time in three years

China's July PPI falls for first time in three years
FILE PHOTO: A woman selects vegetables at a supermarket in Beijing, China, April 11, 2019. REUTERS/Jason Lee/File Photo -
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Jason Lee(Reuters)
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BEIJING (Reuters) – China’s factory gate prices fell in July for the first time in nearly three years, official data showed on Friday, adding to growing worries of deflationary risks in the economy as demand weakens at home and abroad in the face of mounting U.S. trade pressure.

The producer price index (PPI), one gauge of corporate profitability, fell 0.3% in July from a year earlier, the National Bureau of Statistics (NBS) said, the first contraction since August 2016 and more than analysts had expected.

Analyst polled by Reuters had expected the index to slip 0.1% in July, after a flat reading of 0.0% in June.

The consumer price index (CPI) rose 2.8% from a year earlier, the fastest pace since February 2018, and slightly more than expected. Analysts had forecast consumer inflation would remain steady at 2.7% from June.

(Reporting by Hong Kong newsroom; Editing by Kim Coghill)

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