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

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessChina's Inflation Cools as Oil Shock of Iran War Starts to EaseChina’s factory-gate inflation eased for the first time since the Iran war broke out in late February while consumer prices also decelerated, in another sign that cost pressures from the oil shock are starting to fade.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — China’s factory-gate inflation eased for the first time since the Iran war broke out in late February while consumer prices also decelerated, in another sign that cost pressures from the oil shock are starting to fade.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe producer price index rose 3.5% in July from a year earlier, slower than expected and compared with a gain of 4.1% in the previous month, according to data published by the National Bureau of Statistics on Sunday. Consumer inflation decelerated to 0.5% from 1% in June. The core consumer price index, which strips out volatile food and energy items, eased to 0.9% from 1%.China has emerged from a record bout of deflation with weak upward momentum for prices. Sluggish domestic consumer spending has so far limited the extent to which factories can pass on their growing production expenses from higher global prices for oil, chips and metals.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAs a result, a divergence in profits has opened up between upstream and downstream sectors. Industries like clothes-making are suffering a plunge in their earnings, while others such as energy producers are seeing profits soar. The economic fallout of higher global prices for commodities is already starting to fade in China. While crude fluctuated wildly in June and July, average costs still eased from their peak earlier this year.US President Donald Trump said this week that negotiations between Iran and Oman over the Strait of Hormuz are “moving along.” Tehran said it’s “very close” to a deal with Oman on a new maritime transit route in the strait, even as the Islamic Republic renewed a list of demands for the US to agree to before the waterway would open.Many economists have warned in recent years that persistent deflationary pressures in China could harm the economy’s long-term growth, encouraging households to cut back on spending, eating into corporate profits and stifling investment and hiring. A slowdown in the headline price gauges could reignite such concerns by offering further evidence that a return of healthy inflation in the aftermath of the oil shock could still be a long way off.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.