Inflation in China picks up slightly Report: Biden employees find more secret documents

Rising food prices drove up inflation in China at the end of the year, despite the economic setback caused by the coronavirus pandemic. In international comparison, however, inflation of 1.8 percent in December is still very low. The increase is in line with analysts’ expectations after inflation fell to 1.6 percent in November. Core inflation excluding more volatile food and energy prices rose from 0.6 percent in November to 0.7 percent in December, the National Bureau of Statistics said Thursday.

Producer prices, which give an indication of future inflation at the consumer level, fell 0.7 percent in December, less than in the previous month. But it is the third decline in a row. It was also bigger than experts expected.

Producer prices thus continue to reflect the economic problems caused by the Chinese government’s corona policy. Strict corona measures had a negative impact over long stretches of 2022. At the end of the year, the government lifted the measures after massive popular protests. These steps are currently leading to a major corona wave, many companies still had problems in production due to the many sick people.

Experts assume that December was the weakest month for the Chinese economy since the beginning of 2020. Meanwhile, low inflation gives the Chinese central bank and government plenty of room to help the economy. (aeg/sda/awp/dpa)