Data released by China’s National Bureau of Statistics early Friday, January 9, showed that the annual Consumer Price Index (CPI), a key measure of inflation, rose 0.8% year-on-year in December, up from 0.7% in November. This figure matched market expectations and marked the highest reading since February 2023. Food prices led the inflation increase, rising 1.1% year-on-year to their highest level in 14 months.

Meanwhile, the core CPI, which excludes volatile food and energy prices, remained unchanged at 1.2%, following a six-month upward trend. Household appliances rose 5.9%, while transportation costs fell 2.6%.

Separately, China’s Producer Price Index (PPI) remained in negative territory for the 39th consecutive month, falling 1.9% year-on-year in December, compared to a 2.2% decline in November. This was close to expectations of a 2% drop.