China’s economy faces growing deflationary pressures as prices extend fall

Beijing, Jan. 12 (BNA): China’s consumer prices declined for a third month in December while factory-gate prices extended their prolonged slide, highlighting persistent deflationary pressures in an economy struggling to mount a solid recovery.

The consumer price index (CPI) shed 0.3% in December from a year earlier, and was up 0.1% month-on-month, data from the National Bureau of Statistics (NBS) showed on Friday. November’s index dropped 0.5% in annual and monthly terms, Reuters reported.

Services inflation  rose steadily with tourism and hotel accommodation prices increasing by 6.8% and 5.5%, respectively.

The producer price index (PPI) tumbled 2.7% after a 3% fall in November, marking the 15th straight month of declines. Analysts had expected a 2.6% slide in December.

ZH