Overview

• China's consumer price index (CPI) rose by just 0.1% year-on-year in December, down from November's 0.2% increase, according to the National Bureau of Statistics.
• Producer prices declined 2.3% year-on-year in December, marking the 27th straight month of deflation but showing a slight improvement from November's 2.5% drop.
• Weak domestic demand and declining food prices, including a 2.1% drop in pork prices, contributed to the near-zero inflation, raising fears of deflationary pressures.
• Efforts by Beijing to stimulate consumption, such as subsidies and trade-in schemes, have had limited success in boosting demand and broader economic recovery.
• China's economy continues to face significant headwinds, including high debt levels, a struggling real estate sector, and weak consumer spending, despite signs of stabilization in factory activity.