China's PPI hit +2.8% year-on-year in April, ending 41 months of deflation, but an energy shock did the work, not demand. The People's Bank of China now faces a rate-cut bind with factory-gate prices at a four-year high.
China's April producer prices rose 2.8% year-on-year, the highest in nearly four years, as imported cost pressures from higher oil and commodities begin to squeeze factory margins. Source
