expected 0.4%, prior 0.1%core was 0.6% y/y, from 0.4% in December the m/m was 0.7% (expected 0.8%, prior 0.0%)
PPI -2.3% y/y, deflation continued
expected -2.1%, prior -2.3%China's consumer inflation accelerated in January, reaching its highest level in five months, while producer price deflation continued, reflecting mixed consumer spending during the Lunar New Year. The consumer price index (CPI) rose 0.5% year-on-year, up from December’s 0.1% increase and exceeding market expectations of 0.4%. Core inflation, which excludes food and fuel prices, also edged up to 0.6% from 0.4%.
Despite this uptick in inflation, deflationary pressures persist. The producer price index (PPI) fell 2.3% in January, the same as in December and exceeding the expected 2.1% decline. This prolonged factory-gate deflation signals weak demand and ongoing challenges for manufacturers.
Meanwhile, economic headwinds persist. China's manufacturing sector unexpectedly contracted in January, and services activity weakened, increasing calls for additional stimulus. Policymakers face added pressure as fresh tariffs from U.S. President Donald Trump threaten exports—one of the few bright spots in the economy last year.
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This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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