China’s consumer prices saw a slight uptick in December 2024, offering a glimpse into the country’s economic trends as the year concluded. The National Bureau of Statistics (NBS) reported on Thursday that the consumer price index (CPI) rose by 0.1 percent year-on-year, marking a modest increase in consumer inflation.
The core CPI, which excludes volatile food and energy prices, climbed 0.4 percent in December compared to the same month the previous year. This was a slight acceleration from November’s 0.3 percent rise, indicating a steady, albeit slow, growth in underlying consumer prices.
For the entirety of 2024, China’s CPI increased by 0.2 percent. This subdued inflation rate suggests that consumer spending remains cautious. According to Shi Fanqi, an assistant professor at the School of Economics, Peking University, the tepid consumer prices reflect that “consumer spending remains rather weak.” He emphasized the need for additional government measures to boost residents’ income and bolster consumer confidence.
On the production side, the producer price index (PPI), which measures costs for goods at the factory gate, decreased by 2.3 percent year-on-year in December. However, this decline was smaller than November’s 2.5 percent drop, indicating a narrowing in the decline of factory gate prices.
NBS statistician Dong Lijuan attributed the drop in PPI to factors such as seasonal production slowdowns and fluctuations in international commodity prices. Key industries contributing to the PPI decline included petroleum, coal, and other fuel processing sectors, as well as oil and natural gas extraction. Despite the declines, these sectors showed signs of improvement compared to the previous month.
The softened decrease in producer prices may signal stabilizing production costs, which could have implications for manufacturers and exporters in the coming months. As China’s economy adjusts, analysts are watching closely for signs of recovery and the effectiveness of any stimulus measures implemented by the government.
Reference(s):
cgtn.com
