China’s inflation rose less than expected for the month of December, official data showed on Thursday.
The country’s December producer inflation rose 0.9 percent on-year, lower than the 1.6 percent economists were expecting in a Reuters poll. The Producer Price Index — which measures price increases before they reach the consumer — grew 2.7 percent in November.
China’s December consumer inflation (CPI) — a gauge of prices for goods and services — rose 1.9 percent on year, lower than economists’ expectations of a 2.1 percent growth, according to a Reuters’ poll. The CPI rose 2.2 percent in November.
While official data indicated China’s economy held up for much of last year, it now appears to be slowing as production metrics and export orders fall amid the country’s trade dispute with the U.S., its largest trading partner.
Beyond the tariffs battle, China’s economy has been facing its own domestic headwinds. Even before U.S. President Donald Trump kicked off the latest escalation in trade tensions, Beijing was already trying to manage a slowdown in its economy after decades of breakneck growth.
Chinese and the U.S. officials concluded another round of trade talks Wednesday, which were extended into a third day.