China's consumer prices dip 0.8% annually, factory deflation persists

Chinese economy: China's consumer prices continued to decline for the fourth consecutive month in January, accompanied by a drop in producer prices, highlighting deflationary concerns for the world's second-largest economy as it strives to achieve a robust recovery.

Data from the National Bureau of Statistics (NBS) revealed that the consumer price index (CPI) decreased by 0.8 per cent compared to the previous year, following a 0.3 decline in December.

Meanwhile, the CPI showed a 0.3 per cent increase on a month-on-month basis, up from a 0.1 per cent rise in the previous month. 

Reuters' economists had anticipated a 0.5 per cent year-on-year drop and a 0.4 per cent month-on-month increase.

Meanwhile, the producer price index (PPI) registered a 2.5 per cent decline year-on-year in January, compared to a 2.7 per cent drop in the preceding month. This figure was slightly lower than the Reuters poll forecast of a 2.6 per cent decrease.

Despite China's economy expanding by 5.2 per cent in 2023, meeting the official target of approximately 5 per cent, the recovery has been less stable than anticipated by investors.

(With Reuters Inputs)