MNI BRIEF: China Dec CPI Slows To Nine-Month Low Of 0.1% Y/Y
China's Consumer Price Index rose 0.1% y/y in December, slowing for the fourth straight month from November's 0.2% and reaching a nine month low, in line with market expectation, though core CPI continued to rebound to 0.4%, data from the National Bureau of Statistics showed Thursday.
The slowdown was mainly attributed to a 0.5% decline in food as pork and vegetable prices were tamed by sufficient supply. This was partly offset by a 0.2% y/y rise in non-food prices amid increased demand for travel and entertainment amid holiday season. CPI grew 0.0% m/m, improving from November’s 0.6% decline.
PPI declined 2.3% y/y, narrowing from last month’s 2.5% fall and marking the 27th consecutive negative read, beating the market consensus of a 2.4% fall. PPI fell 0.1% m/m, compared with November's 0.1% gain, as construction and steelmaking entered the traditional off-season.