China’s Producer Prices Slow for Seventh Straight Month, Raising Deflation Fears

China’s Producer Prices Slow for Seventh Straight Month, Raising Deflation Fears
Workers inspect steel pipes at a steel mill of Hebei Huayang Steel Pipe Co Ltd in Cangzhou, Hebei Province, China on March 19, 2018. Muyu Xu/Reuters
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BEIJING—China’s factory-gate inflation slowed for a seventh straight month in January to its weakest pace since September 2016, raising concerns the world’s second-biggest economy may see the return of deflation as domestic demand cools.

Consumer inflation, meanwhile, eased in January from December to a 12-month low due to slower gains in food prices, official data showed on Feb. 15, despite the Lunar New Year holiday, which typically pushes up demand for food.