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China’s producer prices plunge the most in seven years as deflation hangs over economy


People walk past buildings in Shanghai, Shanghai, China, on Friday, April 21, 2023.Bloomberg | Bloomberg | Getty ImagesInflation in China stayed at low levels in May, as the economy struggles to recover even after its strict Covid lockdown measures lifted late last year.Producer price index in May fell 4.6%, marking the steepest year-on-year drop in seven years, when producer prices saw a year-on-year drop of 7.2% in May 2016.The latest reading fell further from a decline of 3.6% in April and lower than expectations to see a decline of 4.3% in May, according to Reuters poll of economists.China’s consumer price index in May rose 0.2% compared to a year ago, government data showed. Economists surveyed by Reuters expected a 0.3% rise. CPI in April was at a two-year low of 0.1%.Month-on-month, prices fell 0.2% — economists predicted a 0.1% decline.China …

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