Dec CPI fell yearonyear
CPI in 2023 was 0.2, compared with around 3 government target
Dec PPI was down from a year earlier, steeper than expectation

BEIJING, Jan 12 Reuters China39;s consumer prices declined for a third month in December while factorygate prices extended their prolonged slide, highlighting persistent deflationary pressures in an economy struggling to mount a solid recovery.

The consumer price index CPI shed 0.3 in December from a year earlier, and was up 0.1 monthonmonth, data from the National Bureau of Statistics NBS showed on Friday. November39;s index dropped 0.5 in annual and monthly terms.

Economists polled by Reuters forecast a 0.4 fall in consumer prices yearonyear and a 0.2 gain monthonmonth.

NBS said pork prices, the main factor impacting yearonyear CPI, fell 26.1, narrowing the rate of decline by 5.7 percentage points.

Services inflation, however, rose steadily with tourism and hotel accommodation prices increasing by 6.8 and 5.5, respectively.

The producer price index PPI tumbled 2.7 after a 3 fall in November, marking the 15th straight month of declines. Analysts had expected a 2.6 slide in December.

The latest data underscores the broader weakness in demand across the economy, keeping policymakers alert to any entrenched expectations of price falls. China39;s central bank has pledged to step up macroeconomic policy adjustments to support the economy and drive a rebound in prices.

With a protracted housing downturn, a soft job…