Price data offer fresh evidence of a recovery

Cooling inflation, weak PPI may prompt further policy measures

Factory-gate prices fell in June at their slowest pace in more than two years and inflationary pressure eased further, giving new indications that economic growth is stabilizing in China.

The Producer Price Index declined 1.1 percent from a year earlier, the National Bureau of Statistics said on Wednesday. The drop compared with a 1.4 percent decline in May and was the smallest since April 2012 and prompted some economists to comment that the key indicator could move out of negative territory by the end of the year.