China Inflation Remains at 5 Year Low

China’s inflation rate remained near a five-year low in December, edging up to 1.5% from 1.4% the month before.

Sharp rises in the price of some food items were behind the increase, including a 14% rise in egg prices.

Consumer price inflation (CPI) for the whole of 2014 was 2% compared with 2013, well below the government’s target of 3.5%.

Analysts suggested the data pointed to persistent weakness in the world’s second largest economy.

The producer price index (PPI), which includes wholesale and factory price inflation, fell by a greater than expected 3.3% in December from a year earlier marking the 34th consecutive monthly fall since September 2012. Analysts had expected PPI to fall by 3.1% in December.

China’s National Statistics Bureau said the fall was largely due to falling oil prices.

via BBC

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