Consumer prices in China fell for the third straight month in December highlighting the risk of deflation, while exports expanded more than expected despite the weak global trade.
China’s exports saw another modest uptick in December, underlining its fluctuating recovery in 2023, while deflationary risks continued as consumer inflation fell for a third month in a row.
China’s consumer price index (CPI) fell by 0.5 per cent from a year earlier in November, while the producer price index (PPI) fell for the 14th month in a row.
After months of stagnation or outright contraction in major price indices, a prominent economist has suggested China kick-start growth through a period of inflation with annual rates maintained at 4 to 6 per cent.