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China faces structural inflation risks given rising commodity prices fueled gains in the PPI in March by 1.6% m/m and 4.4% y/y, the China Business News reported. Corporate profits may be cut by the widening gap between the CPI and PPI, costs for downstream industrial companies will gain and SMEs will be hurt, the newspaper said citing Zheng Houcheng, Director of the Yingda Securities Research Institute. However, monetary policy is not likely to tighten soon given weak consumption and investment, CBN said.