China's factory prices surge 3.9% in May, beating forecasts

China's producer price index rose 3.9% year-on-year in May, the highest since 2022 and above the 3.5% forecast by economists surveyed by Wind. The increase was driven by higher oil costs linked to the war in Iran, helping manufacturers escape years of deflation. Consumer prices rose 1.2%, unchanged from April and below the 1.4% forecast. Manufacturers have raised prices for three consecutive months since the conflict began.