China’s CPI Climbs 1.5% In December

China consumer price index (CPI) increased 1.5% year-on-year in December, up by 0.1 percentage points from the previous month, driven by higher fresh food prices, according to data released by China’s National Bureau of Statistics.

Producer price index (PPI) was below market consensus, declining 3.3% year-on-year in December, compared with November’s 2.7% drop. The gauge has remained in negative territories for 34 consecutive months.

Low non-food CPI and PPI inflation data is a reflection of weakness in demand growth as well as lower upstream prices in the international market, writes Goldman Sachs Gaohua senior China macro economist Song Yu in a research report.

China Expert network
Wiki Su is a staff researcher at China Money Network.