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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza