After a slight deflation in China last month, the inflation rate started to rebound in December. China’s National Bureau of Statistics (NBS) released price data for December last year, with the consumer price index (CPI) stopping its decline and rising slightly by 0.2% year-on-year, and by 0.7% month-on-month.
The rise in inflation is due to the continued rise in the price of imported raw materials and fuels in China, which has put pressure on enterprises to increase their costs and the need to raise their selling prices accordingly to shift the cost pressure.
Looking ahead, with a low inflation base at the beginning of last year, it is expected that the CPI growth rate will have a higher chance of accelerating in the future.
As seen by the monthly variation, food prices are under great pressure to rise, food, tobacco and alcohol prices rose 2% month-on-month, affecting the CPI rose 0.63 percentage points. Among the food, fresh vegetables, pork, fresh fruit rose significantly, affecting the CPI rose by 0.06 to 0.28 percentage points, respectively.
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