Challenges Ahead for China’s Economy

China’s producer prices sank more than expected, official data showed Monday, underscoring the challenges that beset the world’s second-largest economy in revitalizing growth momentum.

Producer prices sank 5.4% in June from a year earlier, according to China’s National Bureau of Statistics. This was weaker than a Reuters poll that had expected a 5.0% decline, compared with the 4.6% decline in May.

Annual consumer price inflation was flat in June, weaker than expectations for a 0.2% rise in a Reuters poll and the 0.2% rise in May. Monthly consumer price inflation in June was weaker 0.2%, weaker than expectations for flat growth and the 0.2% decline in May.

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