BEIJING — Both China’s factory-gate prices and consumer inflation in December eased more than expected in the previous month, thanks to a fall in oil prices as well as Beijing’s efforts to ensure commodity and food supplies, which Gives more room for policy. Easing in 2022, official data showed on Wednesday.
According to the National Bureau of Statistics, the producer price index rose 10.3 per cent in December, down from a rise of 12.9 per cent in December a year ago. The result was lower than the 11.2% forecast of economists in a poll conducted by The Wall Street Journal.
The country’s PPI fell 1.2% from a month ago, as prices of most raw materials have already peaked on falling demand. PPI in 2021 grew by 8.1% compared to a year ago.
Meanwhile, China’s consumer price index rose 1.5% in December from a year earlier, while vegetable prices rose 2.3% in November. The result was slightly below the consensus expectation of 1.6%.
The moderation in consumer inflation was primarily driven by a fall in food prices, which rose 1.2% in December after rising 1.6% in November.
On a monthly basis, the CPI dropped 0.3% in December, reversing a 0.4% increase in November, driven by an increase in vegetable and pork supplies.
Consumer prices in China registered an increase of 0.9% in 2021.
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