(Corrects headline to fall from slow)
BEIJING, Feb 10 (Reuters) - China's January factory gate
prices fell more than economists expected, suggesting that
flashes of domestic demand that had stoked consumer prices after
the zero-COVID policy ended are not yet strong enough to
rekindle upstream sectors.
The producer price index (PPI) was down 0.8% on a year
earlier, extending the 0.7% drop the prior month and faster than
the 0.5% fall tipped in a Reuters poll.
The consumer price index (CPI) in January was 2.1% higher
than a year earlier, up on the 1.8% annual gain seen in
December, data from the National Bureau of Statistics (NBS)
showed on Friday, but just shy of the 2.2% increase economists
had predicted in a Reuters poll.
Economists expect the cost of living in China will pick up
over the coming months, with inflation approaching the target of
about 3% that the government set last year.
(Reporting by Joe Cash; Editing by Jacqueline Wong)
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