China exits factory deflation as oil shock boosts prices

China has exited factory deflation after over three years, with producer prices rising 0.5% in March due to surging energy costs linked to the Iran conflict. Consumer inflation, however, cooled to 1%, down from 1.3% in February. Analysts note that while the increase in producer prices is a positive sign, it may not indicate overall economic improvement, as manufacturers struggle to pass on higher costs, potentially leading to thinner profits. Policymakers in Beijing view this exit from deflation as a step towards stabilizing price levels.