China: Inflation inches up in December
January 11, 2016
In December, consumer prices were up 0.5% over the previous month, which followed flat reading tallied in November. The monthly reading mainly reflected much higher prices for food as a result of soaring prices for fresh vegetables and, to a lesser extent, for fresh fruits.
Inflation rose from November 1.5% to 1.6% in November, which represented the highest reading in three months. The print was in line with what market analysts had expected. As a result, the trend was stable in December, with annual average inflation remaining at the previous month’s 1.4%. This marked, nevertheless, an over-five-year low.
Meanwhile, the producer price index fell 5.9% in December over the same month last year, which mirrored November’s decline. The print was a notch below the 5.8% drop that market analysts had expected. The annual average variation of the producer price index decreased from minus 5.0% in November to minus 5.2% in December, which represented the lowest value since December 2009.