Beijing

CHINA'S producer price inflation eased for the third straight month in May on tumbling prices of raw materials, signalling a broader cooling in economic activity as profits are squeezed by slackening domestic demand and rising financing costs.

Moderating factory gate inflation in the world's second-biggest economy could be a further worry for global central banks such as the US Federal Reserve and European Central Bank, which are puzzling over why domestic prices have remained sluggish despite improving economic growth.