China's factory inflation slows, giving central bank room to ease policy

China's factory-gate inflation eased to its slowest pace in six months and consumer price growth also softened in January amid weakening property sector demand, new coronavirus curbs and government efforts to rein in surging materials costs.

The producer price index (PPI) increased 9.1% from a year ago, the National Bureau of Statistics (NBS) said in a statement on Wednesday, slower than the 9.5% growth tipped by a Reuters poll and a 10.3% gain in December. It was the weakest pace since July.

While producer prices in the world's second-largest economy remain elevated thanks to critical supply issues and home and abroad, China's