China’s consumer price inflation rose 0.8% year-on-year in December, up from 0.7%, the highest level since February 2023. The read came in line with market expectations.<\/p>\n
As in November, the acceleration in inflation remains primarily attributable to rising food prices. Food inflation picked up to a 1.1% pace YoY, a 14-month high. Fresh vegetable and fresh fruit prices saw the largest month-on-month upticks — up 18.2% and 4.4% YoY, respectively. Pork prices continued to fall, but saw a slightly smaller drag in year-on-year terms, rising 0.4pp to -14.6% YoY. The YoY level has risen for three consecutive months. We expect the drag from pork price deflation to turn around this year. <\/p>\n
Non-food inflation, on the other hand, remained unchanged at 0.8% YoY. Household appliance prices rose 5.9% YoY as we began to see an impact from 2024’s trade-in policy discounts feed through the economy. Services inflation, in the form of tourism (2.1%) and healthcare (2.9%), generally outpaced goods inflation. The transportation and communication category continued to weigh on inflation, down 2.6% YoY, primarily due to declines in transportation (-1.9%), fuel (-8.2%), and communication appliances (-0.7%). We\u2019re also seeing the continued impact of the property market malaise, with the residence component of inflation in deflation at -0.2% YoY, driven by a -0.3% YoY drop in rents. <\/p>\n
Core inflation was unchanged for a third consecutive month at 1.2% YoY.<\/p>\n
Producer price index inflation rose to -1.9% YoY, up from -2.2% in November. This level marked a 16-month high and the 39th consecutive month of PPI deflation. <\/p>\n","protected":false},"excerpt":{"rendered":"China’s consumer price inflation rose 0.8% year-on-year in December, up from 0.7%, the highest level since February 2023.…\n","protected":false},"author":2,"featured_media":401858,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":{"0":"post-401857","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/401857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=401857"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/401857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/401858"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=401857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=401857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=401857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}