Medium and last year's consumer prices were 0.2% ↑ only..."Deflare" shadow.

China's National Bureau of Statistics reported in December last year that the Consumer Price Index (CPI) rose 0.1% year-on-year.

Last year's annual CPI rose only 0.2%, indicating that inflation and deflationary pressures remain in the midst of the recession.

Monthly CPI gains have also slowed to 0.4% in September, 0.3% in October, 0.2% in November and 0.1% in December after hitting 0.6% in August last year, despite several stimulus measures by Chinese authorities.

The producer price index (PPI) fell 2.3% year-on-year in December last year, marking the 27th consecutive month of decline, while the annual PPI fell 2.2% year-on-year.

Bloomberg analyzed that the situation in China, which is under deflationary pressure, contrasts with other major economies on the brink of accelerating inflation.

Earlier, Chinese authorities announced that they would raise subsidies for compensation sales of old home appliances and raise subsidies for electric buses and batteries to escape the slump in domestic demand.