China's PPI up 3.4% in April

China's producer price index, which measures costs of goods at the factory gate, rose 3.4 percent year-on-year in April, the National Bureau of Statistics said on Thursday.

It was up from the 3.1 percent recorded in March, driven by growth in factory prices in the mining industry and raw material sector.

In the first four months, the PPI rose by 3.6 percent year on year, easing from 3.7 percent growth in the first quarter.

In breakdown, factory prices of the mining industry went up 6.1 percent, and those of raw materials rose 5.7 percent.

Of the 40 sectors covered by the NBS survey, 16 industries saw prices decline compared with a month earlier. Gas producers and suppliers, and the non-ferrous metal metallurgy sector reported smaller price declines.

The mild PPI increase indicates material demand in the real economy remains lukewarm, according to analysts.

The NBS also reported on Thursday that China's consumer price index, a main gauge of inflation, rose 1.8 percent year-on-year in April, down from 2.1 percent for March.

Mild inflation pressure should give Chinese policymakers plenty of room to deal with financial risks while keeping monetary policy prudent and neutral.

China sets its consumer inflation target at around 3 percent in 2018, the same range as last year.