China’s PPI was flat in December and saw a slight improvement in the annual rate from -2.5% YoY in November to -2.3% YoY. Both industrial and consumer goods producers continue to see a challenging price environment. PPI for production is down -2.6% YoY with most sectors seeing deflationary pressures. The deflation in the PPI for consumer goods has slowly fallen since the end of 2022 to just -1.4% YoY as demand has not supported product price growth.