China’s Factory Deflation Persists as Covid Outbreaks Spread

Economic indicators have suggested December was the weakest month for economic activity in China since early 2020 and the beginning of the pandemic. Photo: Bloomberg

(Bloomberg) — China’s factory-gate prices fell more than expected in December, while consumer inflation ticked up as the sudden end to “zero Covid” snarled factory operations but eliminated mobility curbs that had weighed on activity for much of the year.

The producer price index fell 0.7% in December from a year earlier after declining 1.3% in the previous month, the National Bureau of Statistics said Thursday. Economists surveyed by Bloomberg had expected a 0.1% drop.