BEIJING (Reuters) – China’s annual consumer inflation accelerated in December, boosted by higher food prices, even as economic activity was constrained during the month and domestic demand was volatile.
The consumer price index (CPI) rose 1.8% year-on-year, up from a 1.6% annual gain in November, data from China’s National Bureau of Statistics (NBS) showed on Thursday. Results matched Reuters poll The survey estimate of 1.8% matched.
CPI for all 2022 was 2.0% above the level of , in line with the government-set About 3% target.
Producer Price Index (PPI) posted annual decline for third straight month. December fell 0.7% YoY, down from November’s 1.3% annual contraction Economists polled by Reuters had forecast a 0.1 percent decline, the bureau said.
Growth in the world’s second-largest economy slowed in 2022, driven by Uncompromising COVID-19 Restricted for most of the year, global demand wobbles.
China dropped last month Strict zero-COVID measures were lifted, lockdowns lifted, quarantines lifted and routine testing stopped. The result was widespread infection that dampened consumption activity and disrupted production.
World Bank in a January report Say China’s 2022 GDP growth rate has slipped to 2.7% at 19 was the second-slowest growth rate since the mid-1990s, behind 2020’s 2.2%. The global bank combined pandemic restrictions, housing market turmoil and Drought was cited as a factor affecting consumption, production and investment.
It forecasts a rebound to 4.3%, still higher than The June forecast is 0.9 percentage points lower.
China’s Ministry of Commerce said last week that it will study and implement policies to stimulate consumption. As the epidemic prevention and control continues to optimize, Consumer demand will pick up gradually. The lifting of pandemic controls is expected to help ease the pace of the decline in home sales.