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Home Business Insights

China PPI fell at a slower pace

FutureCFO Editors by FutureCFO Editors
January 9, 2020
shanghai

Photo by 756crystal on Pixabay

China’s PPI (producer price index) in December fell 0.5% from a year ago, according to data from the National Bureau of Statistics.

The PPI is perceived as a key indicator of corporate profitability.

The monthly drop has been stabilised compared to the 1.4% in November.

The slower pace of decline was in line with improving price components in recent factory surveys. 

Milder price deflation was partly supported by a recovery in petroleum, coal and other fuel processing industries, the NBS said in a statement.

The PPI for the entire year of 2019 dropped 0.3%, versus the 3.5% growth in the previous year.

China’s CPI (consumer price index)—the main gauge of inflation—in December grew 4.5%, which is the same as that in November and also an eight-year high.

The country’s core inflation, excluding food and energy prices remained modest.

Related:  Moody’s: China’s shadow banking sector continues to dim
Tags: ChinaCPIeconomic growthinflationPPI
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