China factory gate prices fall in January, CPI rises

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China factory gate prices fall in January, CPI rises
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China's January factory gate prices fell more than economists expected, suggesting that flashes of domestic demand that had stoked consumer prices after the zero-COVID policy ended are not yet strong enough to rekindle upstream sectors.

Economists expect the cost of living in China will pick up over the coming months now that its zero-COVID policy has been abandoned, with inflation approaching the target of about 3% that the government set last year.

Julian Evans-Pritchard, senior China economist at Capital Economics, cited large falls in energy and chemicals prices and waning supply chain disruption as factors behind the factory gate price decline.

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