China's producer price index (PPI), which measures costs for goods at the factory gate, rose 10.3 percent in December from the same month last year, data from the National Bureau of Statistics (NBS) showed Wednesday.
That is down from the 12.9 percent year-on-year increase registered in November and the peak of 13.5 percent hit in October.
The country's PPI rose 8.1 percent year on year in 2021, according to the NBS data.
The slower expansion of PPI last month was due to the implementation of policies to ensure supply and stabilize prices of energy and raw materials including crude oil and coal, senior NBS statistician Dong Lijuan is quoted by the Xinhua News Agency as saying.
Wednesday's data also showed China's consumer price index, the main gauge of inflation, rose 1.5 percent year on year in December.