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By Published On: January 9, 20260.8 min read

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

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