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πŸ‡¨πŸ‡³ China's 41-month factory deflation just ended. The global disinflation subsidy went with it.

πŸ‡¨πŸ‡³ China's 41-month factory deflation just ended. The global disinflation subsidy went with it.

China's PPI rose 2.8% year-on-year in April, ending 41 months of factory-gate deflation and withdrawing a key global disinflation subsidy. Headline CPI came in at 1.2% against a 0.9% forecast; the PBOC held Loan Prime Rates for a 12th consecutive meeting.

Line chart of China PPI (red) and global commodity prices (green) % YoY from 2006 to Apr 2026.
Global commodity prices signal China’s PPI inflation accelerating toward 6%, a reversal after four years of deflation. Source

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