China's factory gate prices drop for first time in two years

Taking a hit: Customers shop for vegetables at a supermarket in Nanjing in the eastern Jiangsu province. Falling global commodity prices is making its mark on an economy ailing under strict Covid controls. — AFP

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 hammers 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.