Despite stimulus measures announced in October last year aimed at addressing the Middle Kingdom’s economic slowdown, producer inflation contracted, signalling deflation still remained at the fore.
Data from China’s National Bureau of Statistics saw inflation had slightly growth through December as expected, with its consumer price index (CPI) up 0.1% year-on-year, yet softer than October’s 0.2% rise.
Heightened uncertainty over the nation’s economy saw domestic consumer spending show little growth towards the end of the year.
Beijing’s stimulus package was aimed at supporting growth, and yet while there was some improvement in business activity, it has not translated to consumers.
China’s producer price index (PPI) inflation shrank 2.3% year-on-year for December, less than an expected 2.4% contraction, a slight improvement from the 2.5% drop in November.
Food prices fell by 0.6% compared to November as a result of conducive weather conditions, official statistics showed.
December marked the Chinese PPI’s 27th consecutive month of contraction as factories tackled lower demand and overcapacity.