China’s Inflation Cools as Oil Shock of Iran War Starts to Ease

China’s factory-gate inflation eased for the first time since late February, while consumer prices also decelerated, signaling that oil-shock cost pressures are starting to fade. The combination of cooling producer and consumer inflation is a mild positive for the macro outlook and potentially reduces pressure for tighter pricing or policy responses.

Analysis

China’s factory-gate inflation eased for the first time since late February, while consumer prices also decelerated, signaling that oil-shock cost pressures are starting to fade. The combination of cooling producer and consumer inflation is a mild positive for the macro outlook and potentially reduces pressure for tighter pricing or policy responses.