China's CPI up 0.2%, PPI falls 1.4% in Jan

China’s consumer price index (CPI) rose 0.2 per cent year on year in January, slowing from a 0.8 per cent increase in December, according to data released by the National Bureau of Statistics of China (NBS).

Meanwhile, China’s producer price index (PPI), which tracks factory-gate prices, fell 1.4 per cent year on year in January, reflecting continued pressure in the industrial sector.

The moderation in headline inflation was largely attributed to base effects linked to the timing of the Spring Festival and a sharper decline in energy prices. Last year’s festival fell in January, lifting food and certain service prices and creating a higher comparison base.

Energy prices declined 5 per cent, shaving roughly 0.34 percentage points off the headline figure, NBS said.

Despite the softer overall reading, underlying price pressures showed signs of improvement. Core CPI, which excludes food and energy prices, rose 0.8 per cent year on year, indicating a moderate recovery in consumer demand.

On a month-on-month basis, core CPI increased 0.3 per cent, marking its fastest pace in nearly six months.

Fibre2Fashion News Desk (HU)