China's inflation slowed in December due to a high base in the previous year and slower food price growth, while factory gate inflation accelerated at the fastest pace in more than five years.
Inflation eased to 2.1 percent from 2.3 percent in November, the National Bureau of Statistics reported Tuesday. The annual rate was slower than the expected 2.2 percent.
Food prices rose at a slower pace of 2.4 percent following a 4 percent rise in November. Meanwhile, non-food inflation climbed to 2 percent from 1.8 percent.
Month-on-month, consumer prices increased 0.2 percent. This was the second consecutive rise in prices.
In the whole year of 2016, consumer prices rose 2 percent. Nonetheless, inflation was below the government's full-year target of 3 percent.
Another report from the NBS showed that factory gate prices climbed 5.5 percent year-on-year in December, faster than the 3.3 percent increase seen in November and the expected rate of 4.6 percent.
On a monthly basis, producer prices advanced 1.6 percent after rising 1.5 percent a month ago.
Looking ahead, Chang Liu, a China economist at Capital Economics, said both consumer and producer price inflation will jump in January, with CPI inflation likely reaching the highest since 2013.
The pick-up in inflation will mainly be driven by movements in commodity prices and is unlikely to be sustained, the economist added.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.