BEIJING, May 10 (Reuters) - China’s April producer price inflation cooled for a second straight month as iron ore and coal prices tumbled further, pressured by fears that domestic demand will not be strong enough to absorb surging supplies of steel.
The producer price index (PPI) rose 6.4 percent from a year earlier, missing economists’ expectations for a 6.9 percent rise and easing further from the previous month’s gain of 7.6 percent.
In March, China’s PPI cooled for the first time in seven months as iron ore and coal prices tumbled after rising sharply on a construction boom that drove China’s strongest economic growth since 2015.
China’s consumer price index (CPI) rose 1.2 percent from a year earlier, edging up from March’s 0.9 percent and above analysts’ forecasts, the National Bureau of Statistics said on Wednesday.
Analysts polled by Reuters had predicted April consumer price inflation would edge up to 1.1 percent but remain well within the central bank’s comfort zone, giving it room to continue with a gradual pace of monetary policy tightening without hurting economic growth. (Reporting by Beijing Monitoring Desk; Editing by Sam Holmes)