MNI BRIEF: China Dec CPI Falls Less-Than-Expected By 0.3% Y/Y

China's Consumer Price Index fell by 0.3% y/y in December, narrowing from November's three-year low of -0.5%, while the Producer Price Index -- a measure of factory-gate inflation -- also witnessed a narrowed decline, data from the National Bureau of Statistics showed Friday.

The decline in December CPI was softer than the market consensus of -0.4%. Cold weather pushed up the production, storage and transportation costs of food, with demand picking up before the New Year holiday. However, pork prices were still the main dragger, falling by 26.1% y/y, compared to the previous 31.8% fall. Core CPI, excluding food and energy prices, maintained a modest rise of 0.6%, the same pace from November. On a monthly basis, CPI rose 0.1%, reversing November's 0.5% decline.

The PPI declined for the 15th straight month by 2.7% y/y, narrowing from November's 3.0% drop but underperforming the consensus of a 2.6% decline. PPI fell 0.3% on a monthly basis, unchanged from November's reading, weighed by the continuous fall in international oil prices and weak demand for non-ferrous metal products.