اضافة اعلانConsumer price inflation in China accelerated at its fastest pace in five months, reaching its highest level in January, while producer prices continued to contract, reflecting mixed consumer spending and weakness in the manufacturing sector.
Analysts suggest that deflationary pressures are likely to persist in China this year unless policymakers succeed in reviving stagnant domestic demand. Additionally, tariffs imposed by former U.S. President Donald Trump on Chinese goods have added pressure on Beijing to stimulate growth in the world's second-largest economy, according to Reuters.
Data from the National Bureau of Statistics on Sunday showed that the Consumer Price Index (CPI) rose by 0.5% last month compared to the same period last year, accelerating from a 0.1% increase in December. This exceeded the 0.4% rise forecasted in a Reuters poll of economists.
Core inflation, which excludes volatile items such as food and fuel, also increased to 0.6% in January, up from 0.4% in December.
On a monthly basis, CPI rose by 0.7% in January, slightly below the expected 0.8% increase.
Meanwhile, China's manufacturing sector unexpectedly contracted in January, and services activity weakened, reinforcing calls for additional stimulus measures.
Beijing is widely expected to maintain its economic growth target at around 5% this year, but new U.S. tariffs could add pressure on exports.
The Producer Price Index (PPI) declined by 2.3% year-on-year in January, matching December’s drop and exceeding the expected 2.1% decline. Factory prices have now been in contraction for 28 consecutive months.
