
China has released important inflation data for December 2025, which traders should note for its potential impact on the forex market.
The Consumer Price Index (CPI) rose by 0.8% year-on-year, nearing a three-year high. This figure was slightly below the expected 0.9% but higher than the previous month’s 0.7%. On a monthly basis, CPI increased by 0.2%, surpassing expectations of no change and reversing the prior month’s decline of 0.1%.
Meanwhile, the Producer Price Index (PPI) fell by 1.9% year-on-year. Although still negative, this is a smaller drop than both the expected 2.0% decline and the previous 2.2% fall. Monthly PPI data showed a modest 0.2% rise, above the anticipated 0.1% and improving on the last month’s 0.1% increase.
For forex traders, these figures suggest a moderate pick-up in inflationary pressure within China, which may influence central bank policy expectations and yuan movements. The stronger-than-anticipated monthly CPI and PPI increases could signal gradual economic recovery and potential shifts in monetary policy.
Original Source: Eamonn Sheridan of investinglive.com







