China's producer inflation rose less than expected for the month of December to hit the lowest growth rate in two years, official data showed on Thursday.
The Producer Price Index in December rose 0.9 percent from a year ago, lower than the 1.6 percent economists were expecting in a Reuters poll. The index, which measures price increases before they reach the consumer, was also the lowest since September 2016, according to Reuters' records. PPI in December was much lower than the 2.7 percent year-on-year increase in November.
Although the data indicated that lower energy prices drove the lower-than-expected growth, there was also a broader decline in price of industrial inputs and final consumption goods, which was "consistent with evidence elsewhere of cooling domestic demand," said Julian Evans-Pritchard, senior China economist at Capital Economics.