Economic Buzz: China inflation ticks up on food prices, demand still fragile

China?s inflation inched up to 0.8% in December, the highest since early 2023, driven mainly by a rebound in food prices, especially fresh produce. Core inflation stayed firm at 1.2%, reflecting modest underlying demand support from consumer trade-in programs. However, weak housing prices and falling transport costs continue to offset gains, underscoring lingering deflationary pressures. With full-year inflation flat and well below the 2% target, policymakers remain under pressure to sustain stimulus and revive domestic demand.

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