China's annual inflation hits 3-year high

The news: China’s annual consumer price inflation (CPI) rose to a 34-month high in December, increasing 0.8% year on year, up from a 0.7% rise in the previous month and in line with analyst expectations.

The context: Data from the National Bureau of Statistics showed that, on a monthly basis, the CPI increased 0.2% in December, compared with a 0.1% decline in November.

China’s producer price index (PPI) fell 1.9% year on year, narrowing from a 2.2% decline in November and slightly better than expectations for a 2% drop.