PKIN, Jan. 12 (Reuters) – Producer prices in China rose more slowly than expected in December as the government took steps to contain the surge in commodity prices, official data showed Wednesday.
The production price index (PPI) rose 10.3% last month on an annual basis, according to data released by the National Bureau of Statistics (BNS). Analysts polled by Reuters had expected growth of 11.1%, after a 12.9% increase recorded in November.
Inflation in the manufacturing sector, which has peaked in recent weeks, has been moderate as Beijing intervened to stabilize commodity prices and alleviate the energy shortage.
The consumer price index (CPI) rose 1.5% year on year last month, after rising 2.3% in November. Analysts were expecting growth of 1.8%.
In 2021, the CPI index increased by 0.9%, against a growth of 2.5% in 2020.
Restrictive measures aimed at containing the outbreaks of the coronavirus epidemic are expected to further weigh on the economic outlook. Some cities in China are already asking their residents not to travel for the Lunar New Year festivities.
The Lunar New Year is the most important national holiday in China and traditionally gives rise to family gatherings. Millions of people travel across the country – sometimes tens of thousands of kilometers – to leave major cities and return to their original homes in remote areas.
(Report Liangping Gao and Gabriel Crossley; French version Camille Raynaud)