China’s CPI up 1.9%, PPI rise 0.9% in December
China's consumer prices and producer prices rose weaker-than-expected in December, bearing indications to weakness on China's economic growth.
China’s consumer prices gained 1.9% in December on a year-on-year basis, rising slower than economists’ expectations. The state’s producer prices for December also reflected a weaker-than-expected increase amid China’s slackening economic growth.
Consumer Price Index (CPI) for December eased from the 2.2% increase in November, China’s National Bureau of Statistics said on Thursday. Analysts had expected a 2.1% gain for December.
Prices of industrial products for the domestic market slackened from the previous month, with the Producer Price Index rising 0.9% in December year-on-year, far lower than the 1.6% increase analysts had expected. In November, producer prices were up by 2.7%.
Experts had predicted a slower rise in producer prices amid slacking economic momentum, soft demand, lower commodity costs, and China's ongoing trade conflict with the United States. For the third quarter of last year, China’s economy grew at the weakest pace since the first quarter of 2009.
Sliding factory prices would lead to an erosion in industrial profits, adding headwinds to firms and posing a challenge on their loan repayments.
China’s consumer inflation target for last year was at 3.0%, in the same pace of increase as the previous year. The government had said that consumer prices are expected to be on a reasonable pace of increase, with no sudden surprises.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets