CHINA’S producer prices face upward pressure in 2017 as the market situation continues to improve, the National Bureau of Statistics said Sunday in a commentary on its website, adding to expectations that global inflation may be stronger in 2017.

    China’s producer prices surged more than expected by the most in more than five years in December as prices of coal and other raw materials soared.

    Stronger prices are welcome news for China’s heavily indebted smokestack industries, which are largely State owned and in need of more cash flow to help pay off loans.

    But some industries have not resolved their overcapacity issues, which could be a potential obstacle for further rises in factory prices, the National Bureau of Statistics said.(SD-Agencies)