China's factory gate prices drop for first time since Dec 2020 as Covid curbs take toll

BEIJING: China's factory gate prices for October dropped for the first time since December 2020, and consumer inflation moderated, underlining faltering domestic demand as strict COVID curbs, a property slump and global recession risks hammered the economy.

Analysts say the struggles for businesses and consumers both at home and abroad will heap deflationary pressure on China over coming months, with aggressive global interest rate increases and the Ukraine war adding to Beijing's challenge.