China's price scissors widened to 5 points: Producer prices accelerated, CPI slowed

China’s producer price index rose 5.7% year over year in October, the fastest pace in more than four years, while consumer inflation slowed to 0.7%, leaving a five-percentage-point gap between the two gauges. The widening spread points to mounting cost and demand pressures in the industrial sector even as consumer prices cool. Investors will watch whether factory-gate inflation feeds through to consumer prices and how Beijing’s regulators and policymakers respond to the divergence.