China’s consumer price inflation experienced a decline in December, dropping to just 0.1% year-on-year according to data from the National Bureau of Statistics. This decrease raises concerns about potential deflation, as it is lower than November’s 0.2% increase and aligns with Reuters forecasts. Core CPI, which excludes volatile food and energy sectors, rose slightly to 0.4%, up from 0.3% in the previous month. On a month-to-month comparison, inflation remained flat after a 0.6% drop in November. Food prices fell by 0.6% month-on-month, influenced by favorable weather conditions. Significant decreases were noted in fresh vegetables (2.4%) and fruits (1%), while pork prices, essential to the CPI, declined by 2.1%.
In related financial news, Goldman Sachs has taken a cautious stance towards Tencent Holdings by removing it from its top Asian stocks list, while adding others with potentially significant upside. Meanwhile, Bernstein forecasted that MediaTek, a Taiwanese semiconductor firm, would benefit financially from its collaboration with Nvidia on a new AI supercomputer expected to launch in May 2025. In the U.S., the Federal Reserve’s December meeting minutes indicated rising concerns over inflation risks due to policies from the impending Trump administration.
