(Yicai) Jan. 9 -- China’s consumer inflation inched up, while factory gate prices dropped last year, according to the latest official data.

The consumer price index rose 0.2 percent in 2024 from the previous year, according to data released by the National Bureau of Statistics today. The producer price index fell 2.2 percent in the period.

In December alone, the CPI grew 0.1 percent from a year earlier, down from a 0.2 percent increase in November, mainly because of a decline in food prices, NBS data also showed. The PPI fell 2.3 percent in the period, compared with a drop of 2.5 percent in November.

The recent decrease in CPI growth was mainly due to fluctuations in food and energy prices, as the prices of other goods remained relatively stable, said Fu Linghui, spokesman for the NBS. 

The CPI growth in the fourth quarter was lower than expected, mainly because of insufficient consumer demand, said Wang Qing, chief macro analyst at Golden Credit Rating.

As macroeconomic policies take effect, the supply of industrial products has improved, and prices in some areas have rebounded, which will help improve the operational situation of enterprises, Fu noted.

The off-season of industrial production began in December, so domestic coal and steel prices plunged, dragging down the PPI, Citic Securities said in a research report. Against the backdrop of tight global liquidity, crude oil, non-ferrous metals, and other commodities also saw a price decline, further impacting the PPI.

During the Chinese New Year holiday, the consumer demand for goods and services will soar, raising the CPI growth by about 1 percent in January from a year earlier, Wang predicted. However, he believes this may lead to a decline in February.

The CPI is expected to continue increasing slightly together with bumper crop production, abundant supply of industrial consumer goods, stable supply of services, and higher demand driven by the economic recovery, Fu pointed out.

In the future, China will continue to give full play to its macroeconomic policies, expand domestic demand, promote innovation-driven and production capacity adjustments, enable market prices to stabilize and rebound, and promote sustained and sound economic development, Fu said.

Editor: Futura Costaglione