China's factory-gate inflation grew in May at the fastest year-on-year rate since July 2022, even as consumer inflation remained moderate, adding to signs of strengthening reflation momentum and improving supply-demand dynamics across the industrial sector, experts said on Wednesday.
The latest readings came as fluctuations in global energy prices and a surge of investment in artificial intelligence continued to feed through to the world's second-largest economy, they added.
Looking ahead, experts said that such momentum could underpin a more positive price outlook in the coming months.
Their comments came after data from the National Bureau of Statistics showed that China's producer price index, which measures factory-gate prices, rose 3.9 percent year-on-year in May, accelerating from a 2.8 percent increase in April and marking the third straight month of recovery.
Dong Lijuan, a statistician at the bureau, said the increase in factory-gate inflation in May reflected stronger demand in certain domestic industries and the pass-through effect of fluctuations in international commodity prices.
