China’s CPI turned positive to 0.2% yoy in December, up from -0.50% yoy, above expectation of 0.1% yoy. Core CPI, excluding food and energy, stood at 0.4% yoy, down from 0.5% yoy.
“Ahead of New Year’s Day and the Spring Festival, consumer demand increased, and feed costs also rose,” said Dong Lijuan, a senior statistician at the NBS. “At the same time, affected by unusual weather and rising costs, the CPI turned from a decline into an increase.”
PPI dropped to -0.4% yoy in December, up from November’s -1.5% yoy, higher than expectation of -0.8% yoy. That’s also the slowest factory gate deflation since last February.
