China's Consumer Inflation Highest in Nearly 3 Years, Factory Deflation Eases
China's consumer inflation rose to its highest level in nearly three years in December, while downward pressure on factory-level prices began to ease. This latest data signals that price conditions in China are starting to stabilize more than in previous months.
The Consumer Price Index (CPI) rose 0.8% year-on-year in December. This figure matched market expectations and was higher than the 0.7% increase in November.
On a monthly basis (mom), the CPI rose 0.2% in December. Previously, the CPI had fallen 0.1% in November, while the market expected a December increase of only around 0.1%, resulting in a slightly stronger reading.
Meanwhile, the Producer Price Index (PPI) continued to contract, but at a slower pace. The PPI fell 1.9% year-on-year, improving from the 2.2% decline in November and better than the 2.0% decline forecast.
This condition indicates that cost and selling price pressures in the industrial sector are beginning to ease, although the still-negative PPI indicates that companies are still facing less-than-full demand and intense price competition.
Going forward, the market will be closely monitoring whether the strengthening CPI and improving PPI trends can continue. If they do, this could signal a healthier recovery in domestic demand and reduce the risk of deflation throughout the Chinese economy. (asd)
Source: Newsmaker.id
