China: Inflation decelerates in December
January 10, 2017
In December, consumer prices in China rose 0.2% from the previous month, following November’s 0.1% increase. The reading mainly reflected a strong increase in prices for transportation and health.
Inflation fell from November’s seven-month high of 2.3% to 2.1% in December. The decline slightly exceeded the 2.2% that market analysts had expected. Inflation in 2016 averaged 2.0%, which was up from 2015’s 1.4% but well below the government’s 3.0% target for the year.
Meanwhile, producer inflation rose from November’s 3.3% to 5.5% in December, which represented an over five-year high. The print was above the 4.6% expansion that the markets had expected. In 2016, the decline in producer prices averaged 1.4%, which was markedly up from 2015’s 5.9% drop.
Author: Luis Lopez Vivas, Economist