(Bloomberg) -- China’s factory inflation accelerated in June as the price of commodities held up.
The producer price index rose 4.7 percent from a year earlier, compared with a projected 4.5 percent increase in a Bloomberg survey of economists and a 4.1 percent gain in May. The consumer price index climbed 1.9 percent in June, the statistics bureau said Tuesday, matching the forecast.
The rebound in producer prices is unlikely to be sustained, as factory momentum weakens amid uncertain global demand and slower domestic credit expansion. The producer price gauge is forecast to ease to a 3.2 percent gain this year from the 6.3 percent increase last year that helped support global reflation.
"Prices of major industrial goods edged up and the year-ago basis was low, which boosted a further improvement in producer inflation," Wang Jian, an economist at Shenwan Hongyuan Securities Co Ltd., wrote in a recent note. "But June is probably the peak of the PPI rebound."
