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A near 4-year high in Chinese producer price inflation arrived alongside a concurrent softening in consumer price growth in June, the widest reading yet of a price gap that investors increasingly treat as a structural condition rather than a temporary mismatch.
Factory gate strength without matching household demand is the two-speed pattern China's price data keeps printing.
The spread between factory gate and household Producer prices in China climbed to their highest level in close to four years in June. Consumer price growth weakened over the same period.
The two moves point in opposite directions: one reflects output pricing power at the industrial level, the other reflects restraint at the household level.
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