China’s annual inflation rate edged down to 0.1% in December 2024 from 0.2% in the previous month, aligning with market estimates and marking the lowest print since March.
China inflation slows further in December
The latest result underscored mounting deflation risks in the country, despite government stimulus measures and the central bank's supportive monetary policy stance. Food prices fell following rises in the prior four months (-0.5% vs 1.0% in November). Meantime, non-food prices rose by 0.2% after previously showing no change, helped by rises in cost of housing (0.1% vs -0.1%), healthcare (0.9% vs 1.1%), and education (0.9% vs 1.0%), as well as a slower fall in transport cost (-2.2% vs -3.6%).
Core inflation figures
Core consumer prices, excluding food and energy, rose 0.4% yoy, the most in 5 months, after a 0.3% gain in November. Monthly, the CPI remained unchanged, in line with consensus. That followed a 0.6% fall in November, which was the steepest drop in 8 months. For the full year, consumer prices went up 0.2%, matching the 2023 pace.
