PT Solid Gold Berjangka | China CPI Picks Up Slightly in Dec, But Disinflation Remains in Play

02:08 12 January in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

ekonomi ChinaCPI ChinaCPI y/y Solid Gold Berjangka PT SGB Solid Group SG Berjangka

Solid Gold Berjangka | Based on the details you provided, here is a summary:

  1. Consumer Price Index (CPI):
    • CPI inflation increased by 0.1% month-on-month in December, driven by holiday spending on travel and shopping.
    • Year-on-year, CPI inflation fell by 0.3%, beating estimates for a 0.4% drop and showing improvement from the 0.5% fall in November.
  2. Factors Influencing CPI:
    • Increased holiday spending contributed to the marginal improvement in CPI inflation.
    • Recent data indicated that Chinese travel during the New Year surpassed pre-COVID levels, reflecting improved consumer sentiment.
    • Overall discretionary spending, a major driver of Chinese inflation, remained weak due to higher unemployment and persistent economic concerns.
  3. Producer Price Index (PPI):
    • PPI inflation fell by an annualized 2.7% in December, against expectations for a 2.6% drop. This marks the fifteenth consecutive month of PPI inflation contraction.
    • Weak factory activity, both domestically and in export markets, contributed to the decline in PPI.
  4. Business Spending and Economic Outlook:
    • Business spending, particularly in weak factory activity, did not show improvement in December.
    • Despite consistent monetary stimulus from the People’s Bank of China, overall spending and economic recovery remained elusive in 2023.
    • China faces challenges in rolling out more stimulus to support a post-COVID economic rebound.
  5. GDP Data:
    • Gross Domestic Product (GDP) data for the fourth quarter is due next week and is expected to provide definitive cues on the Chinese economy for 2023.
    • The government’s 5% annual GDP target is still expected to be met.

In summary, the data suggests a mixed economic picture for China, with some improvement in consumer sentiment due to holiday spending but persistent challenges in business spending and overall economic recovery. The upcoming GDP data will be crucial in assessing the overall performance of the Chinese economy in 2023.