China (CNY) Factory Prices Rise 0.5% Amid Oil Surge

China's factory-gate prices, as indicated by the producer price index (PPI), increased by 0.5% year-on-year in March, marking the first rise since September 2022. This growth occurred as oil prices surged due to the ongoing conflict between the U.S. and Iran, with the Brent June contract trading at $96.7 per barrel, a 33% rise since February 28. Consumer prices experienced a 1% increase from the previous year, below the expected 1.2%. Morgan Stanley projects the PPI will rise to 1.2% in 2026, while GDP growth has been revised down to 4.7% due to potentially high oil prices.