Chinese Producer Prices Fall For 25th Straight Month

Chinese consumer prices climbed 2.4% year-over-year in March, right in line with expectations.

This compares with a 2% rise the previous month.

Producer prices were down 2.3%, missing expectations for a 2.2% fall. This compares with a 2% decline in February.

Producer prices were down for the 25th straight month. Some economists see this as an indicator of “the deflationary excess capacity in the system,” while others think it is a sign of weak domestic demand.

Bloomberg BRIEF economist Tom Orlik tweeted this chart that shows that falling producer prices doesn’t bode well for industrial production data, out next week. Weak industrial production numbers will only add to concerns of China’s economic slowdown.

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