China CPI improves slightly but still in deflation

Consumer prices in China improved slightly but were still deflationary for the third consecutive month in December, as the recovery in the world’s second biggest economy continued to struggle.

The consumer price index fell 0.3% year on year last month, better than expectations of a 0.4% decline and against a November decrease of 0.5%.

Producer prices dropped by 2.7% annually and were better than November’s 3%.

Export growth rose to 2.3% year on year in December, from 0.5% in November. Imports for December edged up 0.2% per cent, beating expectations of a decline.

However, full-year exports for 2023 fell 4.6% as surging global inflation hit demand for domestically-made goods. It was the first decline since 2016. Imports for the 12 months fell 5.5%, the first fall since 2020.

Meanwhile the country’s trade surplus was $823bn in 2023, down from last year’s record figure of $878bn.

Reporting by Frank Prenesti for Sharecast.com