0440 GMT - China's producer price deflation deepened in May, and together with falling commodity prices, suggest more deflationary pressures ahead, Goldman Sachs analysts say. The deterioration in May was mainly from further price declines in upstream sectors such as energy and metal prices, they note. PPI inflation also contracted further on a month-on-month basis. Incorporating the weak data, GS lowers its 2025-2026 forecasts for headline PPI inflation to -2.4%/-0.7%, from -2.1%/-0.6% previously. Consumer price inflation held steady at -0.1% in May, as a decline in goods prices was offset by higher services costs. The CPI readings are in line with GS's quarterly forecasts. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

June 09, 2025 00:40 ET (04:40 GMT)

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