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.