While CPI increased in China, PPI fell

In China, which has risen to the position of the second largest country in the world, consumer inflation accelerated in December with the effect of rising food prices, while producer prices decreased.

According to the data of the National Statistics Office, the consumer price index increased by 1.8 percent in December compared to the same period of the previous year. Prices rose 1.6 percent year-on-year in November. Economists had also expected December inflation to be 1.8 percent.

For the entire year 2022, consumer price growth was 2 percent, far behind the 3 percent target set by the Chinese government.

Core inflation, calculated by excluding food and power prices, was 0.7 percent in December. It was 0.6 percent in November.

Producer prices, on the other hand, decreased on an annual basis in December, following October and November. Prices fell 0.7 percent in December compared to the same period last year. Prices fell 1.3 percent in November. However, the decrease in producer prices in December was above the economists’ expectations of 0.1 percent.

For the full year 2022, the PPI increased by 4.1 percent.