China’s PPI fell -0.4% MoM and -2.7% YoY (vs -2.6% YoY expected) in April, while the purchase price index of industrial producers declined -0.6% MoM and -2.7% YoY, continuing the trend of industrial deflation seen in recent months.

• Ex-factory prices for extractive industries dropped -2.1% MoM and -9.4% YoY, while processing industries declined -0.2% MoM and -2.3% YoY.
• Among producer goods, consumer durables prices fell -0.7% MoM and -3.7% YoY, while foodstuff was down -0.1% MoM and -1.4% YoY.
• The steepest declines in purchasing prices were in fuel and power (-2.3% MoM, -7.7% YoY) and chemical raw materials (-0.7% MoM, -4.1% YoY).
• Coal mining (-3.3% MoM, -15.2% YoY) and oil & gas extraction (-3.1% MoM, -14.2% YoY) posted the most significant industry-level declines.
• Non-ferrous metal materials and wires rose 0.7% MoM and 8.5% YoY, while the non-ferrous metal mining and dressing industry was up 1.5% MoM and 19.0% YoY.