Shoppers on Nanjing East Road in Shanghai, China, on Wednesday, Oct. 2, 2024. Photographer: Qilai Shen/Bloomberg
BEIJING: China’s consumer inflation slowed further in December, reflecting persistently lackluster demand and reinforcing calls by economists for stepped-up countercyclical adjustments to boost domestic demand and stimulate consumption.
Economists anticipate China’s consumer prices to rise modestly in 2025, driven by targeted measures aimed at spurring consumption and a package of incremental policies taking effect gradually.
Meanwhile, they still expect the largest single-year rate cut since 2015 this year, which will help consolidate the ongoing recovery in demand.
Data from the National Bureau of Statistics showed last Thursday that the country’s consumer price index, a main gauge of inflation, rose by 0.1% year-on-year (y-o-y) in December after a 0.2% rise in November.
Golden Credit Rating International chief macroeconomic analyst Wang Qing attributed the slower consumer price index growth to factors including increased supply, falling food prices as well as a high comparison base in the previous year.
“Fuelled by government policies such as the trade-in deals for consumer goods, prices of nonfood items remained stable, with their y-o-y growth rate showing a slight increase compared to the previous month,” he added. — China Daily/ANN
