China’s consumer inflation rose less than expected in January, while producer price deflation persisted, suggesting continued deflationary pressures in the absence of stronger stimulus.

Data released by China’s National Bureau of Statistics on Wednesday showed that the consumer price index rose 0.2% year-on-year in January, lower than the 0.4% increase forecast by economists in a Reuters poll. Next is Increased 0.8% in Decemberthe highest level in the past three years.

Prices rose 0.2% month-on-month, below the 0.3% increase forecast by economists.

Core CPI, which excludes volatile food and energy prices, rose 0.8% year-on-year, down from 1.2% in December.

Official data showed that China’s producer price index fell by 1.4% year-on-year, better than economists’ expectations for a 1.5% decline, and the increase slowed down. Decline 1.9% in December.

Deflation in factory-gate prices has persisted for more than three years, weighing on the profitability of manufacturers that weathered production disruptions caused by tepid consumer confidence and U.S. trade policy for much of last year.

The world’s second-largest economy grew 5% last year, in line with Beijing’s official target, helped by strong export growth to non-U.S. markets.

Since the end of the epidemic, China has been struggling to shake off deflationary pressures, weighed down by a long-term slump in the real estate industry and uncertain prospects for the job market. Authorities are trying to curb price wars across industries, where overcapacity has led to a glut of goods and forced companies to cut prices.

Top policymakers are expected to unveil economic targets for this year at a parliamentary meeting next month.

in a policy Report On Tuesday, the People’s Bank of China reiterated its determination to implement “moderately loose” monetary policy to boost the economy and guide a “reasonable recovery” in prices.

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