In December, the policy measures of expanding domestic demand and promoting consumption continued to be effective. Coupled with the approaching New Year's Day and the increase in consumer demand, the Consumer Price Index (CPI) rose by 0.2% month on month and 0.8% year-on-year. The core CPI, which excludes food and energy prices, rose by 1.2% year-on-year. Affected by factors such as the transmission of international commodity prices and the continued effectiveness of policies related to capacity management in key domestic industries, the Producer Price Index (PPI) for industrial producers increased by 0.2% month on month and decreased by 1.9% year-on-year. 1、 The month on month CPI has shifted from a decrease to an increase, with the year-on-year growth rate continuing to expand. The core CPI has increased by 1.2%, while the month on month CPI has shifted from a decrease of 0.1% in the previous month to an increase of 0.2%. The month on month increase is mainly affected by the rise in prices of industrial consumer goods other than energy. Excluding energy, the prices of industrial consumer goods increased by 0.6%, affecting a month on month increase of approximately 0.16 percentage points in CPI. Among them, the effect of boosting consumption policies continues to show, coupled with the approaching New Year's Day, the demand for shopping and entertainment among residents has increased, and the prices of communication tools, maternal and child products, durable consumer goods for entertainment, and household appliances have all risen, with growth rates ranging from 1.4% to 3.0%; Affected by the rise in international gold prices, domestic gold jewelry prices increased by 5.6%. Energy prices decreased by 0.5%, with domestic gasoline prices dropping by 1.2% due to changes in international oil prices, resulting in a month on month decrease of approximately 0.04 percentage points in CPI. Food prices rose by 0.3%, affecting a month on month increase of approximately 0.05 percentage points in CPI. Among them, the demand for pre holiday consumption increased, and the prices of fresh fruits and shrimp and crab increased by 2.6% and 2.5% respectively; The weather conditions are relatively good, with fresh vegetable prices rising by 0.8%, which is 3.3 percentage points lower than the seasonal level; The production capacity of live pigs is relatively sufficient, and the price of pork has decreased by 1.7%. The year-on-year increase in CPI was 0.8%, an increase of 0.1 percentage points from the previous month, and rebounded to the highest level since March 2023. The expansion of the year-on-year increase was mainly driven by the increase in food prices. Food prices rose by 1.1%, an increase of 0.9 percentage points compared to the previous month, and the year-on-year impact on CPI increased by about 0.17 percentage points compared to the previous month. In the food industry, the price increase of fresh vegetables and fruits has expanded to 18.2% and 4.4% respectively, with a year-on-year increase of about 0.16 percentage points in CPI compared to the previous month; Beef, lamb, and seafood prices have increased by 6.9%, 4.4%, and 1.6% respectively, with the growth rates expanding; Pork prices have decreased by 14.6%, with a slight narrowing of the decline. Energy prices fell by 3.8%, an increase of 0.4 percentage points from the previous month, with gasoline prices dropping by 8.4%. The core CPI, which excludes food and energy prices, increased by 1.2% year-on-year, maintaining a growth rate of over 1% for four consecutive months. The service price increased by 0.6%, affecting the year-on-year increase of CPI by about 0.25 percentage points. Among them, the price of household services increased by 1.2%; Rent prices have decreased by 0.3%. Excluding energy, the price of industrial consumer goods increased by 2.5%, affecting a year-on-year increase of about 0.63 percentage points in CPI. Among them, the price increase of gold jewelry continued to expand to 68.5%; The prices of household appliances and daily necessities have increased by 5.9% and 3.2% respectively; The price decline of fuel powered cars and new energy cars narrowed to 2.4% and 2.2% respectively. 2、 The month on month increase in PPI has expanded, while the year-on-year decrease has narrowed. PPI has risen by 0.2% month on month for three consecutive months, with an increase of 0.1 percentage points compared to the previous month. The main characteristics of the month on month operation of PPI are: firstly, the improvement of supply and demand structure has driven up prices in some industries. The comprehensive improvement of production capacity governance and market competition order in key industries continues to show results, with coal mining and washing industry and coal processing prices rising by 1.3% and 0.8% respectively month on month, both rising for five consecutive months; The manufacturing price of lithium-ion batteries has increased by 1.0%, and the manufacturing price of cement has increased by 0.5%, both of which have been rising for three consecutive months; The manufacturing price of new energy vehicles has changed from a decrease of 0.2% last month to an increase of 0.1%. The seasonal increase in demand has driven the prices of gas production and supply industry, electricity and heat production and supply industry to rise by 1.2% and 1.0% respectively, while down processing and wool textile dyeing and finishing prices have risen by 1.2% and 1.0% respectively. The second factor is the differentiation of price trends in domestic non-ferrous metal and petroleum related industries due to input factors. The upward trend in international non-ferrous metal prices has driven up prices in the domestic non-ferrous metal mining and selection industry, non-ferrous metal smelting, and rolling processing industry by 3.7% and 2.8% respectively, with silver smelting, gold smelting, copper smelting, and aluminum smelting prices rising by 13.5%, 4.8%, 4.6%, and 0.9% respectively. The decline in international crude oil prices has affected domestic oil extraction and refined petroleum product manufacturing prices, which have decreased by 2.3% and 0.9% respectively. PPI decreased by 1.9% year-on-year, narrowing the decline by 0.3 percentage points compared to the previous month. Domestic macro policies continue to show significant effects, and prices in some industries are showing positive changes. One is the deepening of the construction of a unified national market, and the year-on-year decline in prices of related industries continues to narrow. The market competition order continues to optimize, and the price decline of coal mining and washing industry, lithium-ion battery manufacturing, photovoltaic equipment and component manufacturing has narrowed by 2.9, 1.2 and 0.4 percentage points respectively compared to last month, and has been continuously narrowed for 5 months, 4 months and 9 months respectively. The second is to cultivate and strengthen new quality productivity, driving up prices in related industries year-on-year. The development momentum of industries related to the digital economy is strong, with rapid growth in the production of new raw materials and materials, continuous empowerment of green transformation, a 15.3% increase in prices of external storage equipment and components, a 9.0% increase in prices of biomass liquid fuel, a 5.5% increase in manufacturing prices of graphite and carbon products, a 2.4% increase in prices of integrated circuit products, a 0.9% increase in prices of comprehensive utilization of waste resources, and a 0.4% increase in manufacturing prices of service consumer robots. Thirdly, the effective release of consumer potential has driven up prices in relevant industries year-on-year. The special action to boost consumption has been deeply implemented, and the consumption of cultural, sports, and quality products has grown rapidly. The manufacturing prices of arts, crafts, and ceremonial supplies have increased by 23.3%, the manufacturing prices of sports balls have increased by 4.0%, the manufacturing prices of Chinese musical instruments have increased by 2.0%, and the manufacturing prices of nutritional foods have increased by 1.5%. (New Society)