China¡¯s consumer inflation unexpectedly stalled in May even as factory prices gained at the fastest pace in almost four years, storing up risks for company profits as poor demand at home seals off the economy from a global commodities rally.
The consumer-price index climbed 1.2% from a year earlier, rising at the same pace as in the previous month and missing the median estimate of 1.3% in a survey of economists. A 16% plunge in pork prices had a 0.3 percentage-point drag on the index, according to data published by the National Bureau of Statistics on Wednesday.
Producer inflation accelerated to 3.9% compared with a year ago, matching forecasts and up from 2.8% in April. The core index, which strips out volatile food and energy prices, surprised by undershooting expectations and increasing 1.1%, slower than its 1.2% gain in April.
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