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.

A man looks at shoes in a shopping mall Source: Bloomberg

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.


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 16,000 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

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.