Surging global oil prices driven by the Iran war are poised to end China’s
record producer price deflation earlier than expected, though the economic
benefit remains uncertain. Before Donald Trump’s recent actions, economists
forecasted China’s producer prices would continue their three-and-a-half-year
negative streak through 2026. With energy costs climbing sharply, Wall Street
banks including Citigroup Inc. and Goldman Sachs Group Inc. now project factory
prices could rebound as soon as this month, while consumer prices are already
rising.
