China’s producer inflation jumps to 4-year high, squeezing manufacturers

China's producer price inflation surged to its highest level in four ​years in June, piling pressure on manufacturers' profit margins as weak domestic demand limits their pricing power.

The faster growth in factory-gate prices ​owed partly to a low base of comparison a year earlier, though analysts said soft domestic demand meant deflationary pressures ⁠had yet to ease meaningfully.

Evidence of subdued domestic demand was underscored by China's auto sales, which fell for a ninth consecutive month in June, prompting carmakers to turn to external markets.