China factory-gate prices rise at fastest pace in over 3 years

April PPI surges 6.8% on year, beating forecasts

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A factory in China: Global investors are increasingly worried that pandemic-driven stimulus measures could spark inflation. © Reuters

BEIJING (Reuters) -- China's factory gate prices rose at the fastest rate in three and a half years in April as the world's second-largest economy gathers momentum after strong first-quarter growth, but economists downplayed the risks to inflation.

Investors globally are increasingly worried that pandemic-driven stimulus measures could spark a rapid rise in inflation and force central banks to raise interest rates and take other tightening measures, potentially holding back economic recovery.

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