Chinese inflation slows

China's consumer price index rose 2.5 per cent in December.

China's consumer price index rose 2.5 per cent in December from a year earlier, slower than the three per cent year-on-year rise in November, data from the National Bureau of Statistics showed.

The rise in the key inflation gauge matched the median 2.5 per cent increase forecast by 13 economists in a Dow Jones Newswires survey.

The CPI was up 2.6 per cent for the year as a whole. It also increased 0.3 per cent in December from November. In November, it fell 0.1 per cent from the preceding month.

Food prices, the most volatile element of consumer price inflation, rose 4.1 per cent on-year in December, compared with a 5.9 per cent on-year rise the previous month.

Nonfood prices were up 1.7 per cent in December, compared with November's 1.6 per cent gain.

Producer prices fall in December

Meanwhile, China's producer price index fell 1.4 per cent in December from a year earlier, matching the 1.4 per cent on-year fall in November.

The fall exceeded the median 1.3 per cent decline forecast by 13 economists in a Dow Jones Newswires survey.

The PPI was flat in December, compared with November. In November, it was also flat compared with the preceding month. 

The PPI tracks the prices paid for finished goods at the factory gate.

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