This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-30738406
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| China's inflation rate rises 1.5% in December | China's inflation rate rises 1.5% in December |
| (35 minutes later) | |
| China's consumer inflation rate rose 1.5% in December from a year earlier, below the government's target of 3.5%, and sticking at a near five-year low. | China's consumer inflation rate rose 1.5% in December from a year earlier, below the government's target of 3.5%, and sticking at a near five-year low. |
| The country's official consumer price index (CPI) figure is its main inflation gauge. | The country's official consumer price index (CPI) figure is its main inflation gauge. |
| The December figure reflects a seasonal hike in some food prices and compares with a rise of 1.4% in November. | |
| During 2014, China said its consumer prices grew 2% compared with 2013, state news agency Xinhua said. | During 2014, China said its consumer prices grew 2% compared with 2013, state news agency Xinhua said. |
| The mainland's government also released its monthly wholesale inflation rate for December, which measures factory prices for consumer goods, as well as wholesale prices of production materials. | The mainland's government also released its monthly wholesale inflation rate for December, which measures factory prices for consumer goods, as well as wholesale prices of production materials. |
| The Producer Price Index (PPI) figures showed wholesale inflation declined by 3.3% in December from a year earlier, more than expected and marking the 34th consecutive monthly fall. | The Producer Price Index (PPI) figures showed wholesale inflation declined by 3.3% in December from a year earlier, more than expected and marking the 34th consecutive monthly fall. |
| Analysts said the PPI numbers were pushed down by falling commodity prices and energy prices. | Analysts said the PPI numbers were pushed down by falling commodity prices and energy prices. |
| Behind the numbers | Behind the numbers |
| Together, the inflation numbers point to weak domestic demand across the mainland, which some analysts say may give the government more room to introduce policies and projects aimed at boosting the economy. | Together, the inflation numbers point to weak domestic demand across the mainland, which some analysts say may give the government more room to introduce policies and projects aimed at boosting the economy. |
| On Thursday, however, China said the recent approval of infrastructure projects would not "play the role of using fiscal expenditure as strong economic stimulus in 2015" and that the projects were different to stimulus measures introduced in 2008. | On Thursday, however, China said the recent approval of infrastructure projects would not "play the role of using fiscal expenditure as strong economic stimulus in 2015" and that the projects were different to stimulus measures introduced in 2008. |
| Liu Ligang, an economist with ANZ in Hong Kong, said China's inflation had been "very tepid". | Liu Ligang, an economist with ANZ in Hong Kong, said China's inflation had been "very tepid". |
| "Going forward, we do see the risk of deflation is rising, especially [as] PPI inflation has been in negative territory for over 34 months," he said. | "Going forward, we do see the risk of deflation is rising, especially [as] PPI inflation has been in negative territory for over 34 months," he said. |
| "That means there's no pass-through effected from PPI inflation into CPI inflation. | "That means there's no pass-through effected from PPI inflation into CPI inflation. |
| "In fact, CPI will continue to be dragged down by PPI inflation in the next few quarters [and] all this suggests the People's Bank of China will need to act more aggressively." | "In fact, CPI will continue to be dragged down by PPI inflation in the next few quarters [and] all this suggests the People's Bank of China will need to act more aggressively." |