(Yicai) Feb. 11 -- China’s consumer price index rose 0.2 percent in January from a year earlier, slowing from December and missing market forecasts, as the Spring Festival fell in a different month this year compared with last year and energy prices declined.

The gain was lower than December’s 0.8 percent increase and below economists’ expectations of a 0.4 percent rise, according to a Yicai Chief Economist Survey.

Meanwhile, the producer price index fell 1.4 percent from a year earlier, narrowing from a 1.9 percent drop in December, as so-called “anti-involution” measures -- government efforts to curb excessive price competition and overcapacity in certain industries -- and stronger demand in some sectors continued to support prices.

Data released today by the National Bureau of Statistics showed that the CPI rose 0.2 percent from the previous month, while the PPI climbed 0.4 percent month on month, marking the fourth consecutive monthly increase and a 0.2 percentage point acceleration from December.

Base Effect and Energy Drag

The Spring Festival fell in January last year, when food and some service prices rose significantly, creating a high base of comparison that weighed on January’s year-on-year CPI growth, said Dong Lijuan, chief statistician of the NBS’ urban division.

In addition, energy prices fell 5.0 percent last month, dragging down year-on-year CPI growth by about 0.34 percentage points, 0.06 percentage points more than in the previous month. Gasoline prices dropped 11.4 percent from a year earlier, with the decline widening by 3.0 percentage points from December, she said.

The core CPI, which excludes food and energy prices, rose 0.8 percent from a year earlier and 0.3 percent from the previous month, the highest level in six months, Dong added.

The PPI’s month-on-month rise was driven by several factors, Dong said. First, the continuous advancement of the construction of a unified national market drove up prices in some industries. Second, increased demand led to price hikes in related industries. Third, input factors caused a divergence in the price trends of domestic nonferrous metals and petroleum-related industries, she said.

Looking ahead, Fu Linghui, spokesperson for the NBS, said at a press conference held by the State Council Information Office that favorable factors supporting a moderate price recovery are accumulating.

From the perspective of fundamentals, as the special actions to boost consumption are effectively implemented, especially with the introduction of a series of additional measures such as the coordinated fiscal and financial policies to stimulate domestic demand, consumer demand is expected to gradually expand, providing a foundation for stable prices, Fu said.

From the perspective of policy support, the effects of industry self-discipline and capacity regulation will continue, and capacity regulation in key industries will be further strengthened this year, and the product standard system and quality will be improved, which is conducive to the price pick-up, Fu concluded.

Editor: Emmi Laine