China’s CPI was flat in December and up just 0.1% YoY, down from 0.2% YoY in November. Both of these moves were in line with expectations. The annual increase is the weakest since March. Core CPI saw an acceleration from 0.3% YoY to 0.4% YoY in December after an 0.2% MoM increase.

Chinese goods prices are seeing deflationary pressure with declines of -0.1% MoM and -0.2% YoY while services prices are higher by 0.1% MoM and 0.5% YoY. However, both remain suppressed as the Chinese economy continues to be sluggish and weak consumer demand fails to drive prices to a more stable increase.