4.4 C
Wednesday, February 1, 2023

China recorded inflation of 2% throughout 2022, below what was projected

Must read

- Advertisement -

The price index for the last month of last year thus exceeded the 1.6% of November, although it remains below 2%, a sign that the economy is still facing the effects of its zero Covid-19 policy, according to the AFP news agency.

While, inflation for all of 2022 reached 2%, at a time when other large economies face sharp price increases due to the rising cost of energy and food and problems in supply chains.

- Advertisement -

Beijing had set an inflation target of 3% for 2022, and the fact that it was below that level gives the Chinese authorities room to apply stimuli to the economy.

The world’s second-biggest economy is still bearing the effects of years of applying the zero-coronavirus policy, which has hit businesses and supply chains as well as consumption, despite the fact that most restrictions have already been lifted.

- Advertisement -

On the other hand, the producer price index, which measures the cost of goods leaving the factory, contracted to 0.7% in December for the third consecutive month.

“The economy is still operating below its potential,” Zhiwei Zhang of Pinpoint Asset Management wrote in a note.

China is scheduled to release its economic growth figures for 2022 next Tuesday, while Beijing has set an annual economic growth target of 5.5%.

Source: Ambito

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

Latest article