In China, consumer prices in December rose to the highest level in three years. The increase was mainly driven by food, especially fresh vegetables and beef. At the same time, the annual price growth remained low, showing weak domestic demand.
The producer price index continued to fall throughout the year. This indicates excess production and competition among producers. Therefore, additional measures are needed to boost economic activity and stabilize prices.
The Chinese government aims to raise people’s incomes and expand consumption opportunities. At the same time, work is underway to reduce excess products and control prices.
Experts note that annual price growth remains low and below the government’s targets. Therefore, additional measures are expected next year to support economic growth and reduce deflation.
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