Producer prices sank 5.4% in June from a year earlier and slipped 0.8% from a month ago, according to China's National Bureau of Statistics.
This was weaker than a Reuters poll that had expected a 5.0% annual decline, compared with the 4.6% annual decline in May.
The annual decline in June was China's ninth consecutive drop and its steepest since December 2015.
Monthly consumer price inflation in June was weaker 0.2%, weaker than expectations for flat growth and tracking the 0.2% decline in May.
But this would still be soft and won't constrain the People's Bank of China's ability to loosen policy further."
Persons:
Zhichun Huang, —, Huang, PBOC
Organizations:
Visual China, Getty, National Bureau of Statistics, Reuters, Bank, People's Bank of China
Locations:
China, Ukraine