Beijing — China’s producer prices beat expectations to more than five-year highs in December as prices of coal and other raw materials soared, but consumer inflation remained subdued. The government’s economic planning agency head also said the economy probably grew 6.7% in 2016. The pick-up in prices reinforces views that the world’s second-largest economy is still showing signs of stabilisation, underpinned by stronger factory activity and domestic demand, which is being fuelled by a lending and building boom. The producer price index (PPI) rose 5.5% in December year on year — the strongest move since September 2011 — compared with November’s 3.3% increase, the National Statistics Bureau said on Tuesday. Analysts had expected a 4.5% gain, a Reuters poll showed. Raw materials and mining continued to show the fastest gains. The statistics bureau said volatility in exchange rates was one cause of the PPI rise as commodity imports became more expensive. The yuan weakened 6.5% against ...
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