China’s Jan inflation hits 14-year-low; CPI +0.3% m/m with y/y remaining in deflation at..

Monthly, the CPI rose by 0.3%, indicating the second straight month of increase and hitting its highest level since last August. In 2023, consumer prices rose by 0.2%.

Core consumer prices, which exclude prices of food and energy, increased by 0.4% y/y in January, the softest rise since last June, after a 0.6% gain in the prior three months.

Monthly, producer prices fell 0.2% in January, following the prior 0.3% drop. In 2023, producer prices fell 3.0%, swinging from a 4.1% gain in 2022.

China’s producer prices declined for a 16th month in January, with the producer price index declining 2.5% in January from a year earlier, the National Bureau of Statistics reported Thursday, slightly better than expectations for a 2.6% decline, after a 2.7% drop in December.

Food prices in China dropped by 5.9% from the prior year in January 2024, much faster than a 3.7% fall in the previous month. This was the seventh straight month of decrease in the cost of food and the steepest pace on record.

However, analysts argued that Chinese authorities will likely seek to stabilize the currency amid efforts to prop up a faltering economic recovery.

Mainland Chinese stock markets will be closed at the end of today, reopen February 18.

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