China’s consumer prices barely rose in December, underlining deflationary pressures in the world’s second-largest economy that have pushed bond yields to record lows.
Consumer price growth was 0.1 per cent last month against a year earlier, in line with an average analyst forecast from Reuters and the slowest in nine months. The reading released on Thursday was lower than 0.2 per cent growth in the previous month.
The producer price index, which measures factory gate prices, declined 2.3 per cent, slightly better than analyst estimates of a 2.4 per cent fall and a 2.5 per cent contraction in November. The December figure means the gauge has been in deflationary territory for 28 months.
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