China's lengthy bout of deflation in producer prices extended through December, but eased modestly, reported the National Bureau of Statistics (NBS) on Friday.
In December, China's producer price index (PPI) fell 1.9% on-year, tightening a bit from the 2.2% on-year decline recorded in November, but again underlining concerns that the nation's huge economy is still pressured by soggy property and consumer markets.
December marked the 39th-straight month China's PPI has declined on year.
On month, the nation's PPI rose 0.2% in December from November. For all of 2025, China's PPI on average fell 2.6% from 2024, added the NBS.
As of December, China's PPI has increased on a monthly basis for three consecutive readings due to improvements in the supply and demand structure, and gains coal mining and processing industries, said NBS statistician Dong Lijuan, reported Xinhua, the state news service.
Nevertheless, the China economy has been weathering persistent property-sector doldrums, with both residential and commercial real estate values slipping for nearly five years.
With housing prices falling, many of China's consumers face declining net worths, and feel less inclined to spend.
The commercial property sector, including office buildings, has been through a similar stretch of slipping values, with outlooks for more of the same.
Separately, the NBS also reported that China's consumer price index (CPI) rose 0.8% on year December. For the whole of 2025, the CPI was flat.
While prices are tepid, the outlook for China gross domestic product (GDP) in 2026 remains moderately positive.
The nation's GDP is expected to expand by real 4.8% on year in 2026, Goldman Sachs Research reported on Thursday. China's exports will expand in 2026, while property markets will slowly heal through the year, reducing drag on overall growth, advised Goldman Sachs.
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