China’s factory inflation slid to the lowest level since November 2016 last month amid slowing output and higher year-ago base comparisons.
The producer price index rose 4.9 percent in December from a year earlier, versus a projected 4.8 percent rise in a Bloomberg survey and 5.8 percent in November. The consumer price index climbed 1.8 percent, the statistics bureau said Wednesday, compared with a median forecast of 1.9 percent.
Easing factory prices could reduce incentive for the People’s Bank of China to raise borrowing costs, a move that would alleviate pressures on the bond market amid efforts to curb the pace of debt growth. Policy makers said during an annual gathering in Beijing that they were taking a three-year approach to winning "critical battles" against financial risk, pollution and poverty, and signaled that monetary policy will remain "prudent and neutral."
Source : Bloomberg