Advertisement
China inflation: price growth set to remain below other major economies in 2023 amid reopening
- Consumer inflation stood at 2 per cent in 2022, below the official target of ‘around 3 per cent’ after the consumer price index rose by 1.8 per cent in December
- Producer price index (PPI), which reflects the prices that factories charge wholesalers for products, grew by 4.1 per cent last year after falling by 0.7 per cent in December
Reading Time:3 minutes
Why you can trust SCMP
1
Inflation in China this year is unlikely to hit the heights of other major economies as they reopened, allowing for further policy loosening to support the economy, analysts and officials said.
China’s inflation remained moderate last month, data released on Thursday showed, with the consumer price index (CPI) rising by 1.8 per cent in December from a year earlier, up from 1.6 per cent growth in November, according to the National Bureau of Statistics (NBS).
For the whole of 2022, consumer inflation in China stood at 2 per cent, below the official target of “around 3 per cent”.
Advertisement
The producer price index (PPI), which reflects the prices that factories charge wholesalers for products, fell by 0.7 per cent in December, year on year, up from a fall of 1.3 per cent in November. China’s PPI grew by 4.1 per cent last year, up from a rise of 0.9 per cent in 2021.
The uptick in inflation is unlikely to be as large as that seen in many other economies as they reopened
“Consumer price inflation ticked up in December, while producer price deflation eased. There are some early signs that the transition toward living with Covid is starting to put upward pressure on prices,” said Zichun Huang, a China economist at Capital Economics.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x