China’s factory prices have been falling since March 2012, and more than four years of producer price deflation have squeezed industrial companies’ cash flow. China 's consumer prices rose unexpectedly for the first time in nearly two years . The producer price index rose 0.1 % in September from a year earlier , marking good news for the Beijing government which is working to reduce corporate debt . Consumer inflation also beat predictions , thereby easing worries regarding China 's economy following weak trade data the previous day which rattled the global markets . " An uptick in inflation , if sustained , would be good news for China 's ability to service its overhang of corporate debt . With low interest rates keeping debt service costs in check and producer prices rising , the outlook for Chinese industrial profits is improving " , says PNC Financial 's Bill Adams .
China 's consumer prices rose unexpectedly for the first time in nearly two years . The producer price index rose 0.1 % in September from a year earlier , marking good news for the Beijing government which is working to reduce corporate debt . Consumer inflation also beat predictions , thereby easing worries regarding China 's economy following weak trade data the previous day which rattled the global markets . " An uptick in inflation , if sustained , would be good news for China 's ability to service its overhang of corporate debt . With low interest rates keeping debt service costs in check and producer prices rising , the outlook for Chinese industrial profits is improving " , says PNC Financial 's Bill Adams .