China's Consumer Inflation Hits Two-Year Low at 0.1%

China's consumer prices increased at their slowest pace in two years, rising just 0.1% in April from a year ago, indicating weakness in domestic demand and raising questions about the strength of the economic rebound. The producer price index, which measures factory-gate prices, declined by 3.6%, marking the biggest contraction in three years. Despite the central bank's efforts to bolster the economy, prices are stagnating or falling in the country. The weak property sector recovery likely has exerted “persistent” downward pressure on the factory-gate prices.