China’s producer prices – which measure what is sometimes called “inflation at the factory” – soared 5.5% in December, from a year ago. This was far hotter than economists had expected, though they’d expected a pretty good jump, with the Bloomberg consensus guess coming in at 4.6%.
In November, producer prices had already jumped 3.3% from a year earlier. There have now been only four months in a row of producer price increases, after they’d been falling in a long bout that began in early 2012. Prices fell as much as -5.9% year-over-year in mid- to late 2015, under the full onslaught of the twin furies, the global commodities bust and overcapacity in China.