China’s Inflation Rises 1.8% in December amid Weakening Domestic Demand

China’s annual consumer inflation rate picked up speed in December, led by rising food costs despite weakening domestic demand and moderate economic growth.

Data released Thursday by the National Bureau of Statistics (NBS) indicated that the consumer price index (CPI) was 1.8% higher than a year earlier, accelerating from the 1.6% annual growth reported in November.

According to the data, “the price of fresh vegetables and fresh fruits rose by 7.0% and 4.7% respectively.”

The CPI figure was in line with Reuters’ predictions.

The CPI in 2022 was 2.0% higher than in 2021, compared to the government’s objective of roughly 3%.

China’s producer price index fell 0.7% in December compared to the previous year, worse than projection of a 0.1% drop.