China’s consumer price index (CPI) went up 2.5% year-on-year in January, slightly higher than consensus of 2.4%. The index is up 0.1% compared to December, according to data released by the National Bureau of Statistics.
The CPI went up 2.6% for urban areas and 2.2% for rural regions. Food prices increased 3.7% while non-food prices went up 1.9%. Consumer products prices climbed 2%, and services prices increased 3.7%.
Producer price index (PPI) dropped 1.6% in January. The index is down 0.1% month-on-month.
The PPI has remained in negative territory for almost two years because of continued weakness in global commodity prices.
"Looking ahead, the inflation outlook for the coming months remains subdued," writes Julian Evans-Pritchard, china Economist at London-based research firm Capital Economists, in a report. "With policymakers concerned about the pace of credit growth, chances that monetary policy will be eased appear slim."