Following months of deflationary pressure in the second-largest economy in the world, Chinese consumer prices increased in December, according to official statistics released on Friday.
The National Bureau of Statistics (NBS) reported that the consumer price index, a crucial indicator of inflation, increased 0.8 percent annually.
The number was higher than the 0.7 percent gain in November and consistent with a Bloomberg projection.
As the new year drew near, consumer demand increased last month, according to a statement from NBS statistician Dong Lijuan.
“Policies aimed at expanding domestic demand and promoting consumption continued to show results,” Dong added.
While Beijing has been attempting to shift towards a growth model based more on domestic consumption and less on exports and manufacturing, success has been limited.
The producer price index — which measures the cost of goods at the factory gate — dropped 1.9 percent on-year in December, the NBS said. The Bloomberg survey had forecast a decline of two percent.
The PPI has been in deflation for more than three years, reflecting weak demand and a global oversupply of Chinese manufactured goods.
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