BEIJING (Reuters) – China’s consumer price index grew at the fastest pace in five months in January, while producer price deflation persisted, as holiday spending looked encouraging in the wake of various government incentives.
The consumer price index rose 0.5% last month from a year earlier, quickening from December’s 0.1% gain, data from the National Bureau of Statistics showed on Sunday, above a 0.4% rise estimate in a Reuters poll of economists.
CPI edged up 0.7% month-on-month, against an unchanged outcome in December and missing a forecast 0.8% increase.
The producer price index declined 2.3% on year in January, the same as a slide in December, versus the estimated 2.1% fall.
Analysts believe deflationary pressures are likely to persist in China this year unless policymakers can rekindle sluggish demand, with fresh U.S. trade tariffs adding to pressure on the economy.
(Reporting by Qiaoyi Li, Liangping Gao and Ryan Woo; Editing by Saad Sayeed)
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