China's producer price index (PPI), which measures inflation at wholesale level, fell 1.9 percent year on year in December, the National Bureau of Statistics (NBS) said on Friday.[Hong Kong company registration]

This marks the 10th straight month of decline after the PPI dropped in March for the first time since December 2009.

The decline was smaller than the 2.2-percent decrease in November, indicating that the economy has been stabilizing, [Set Up Company Hong Kong]analysts said. The PPI inched down 0.1 percent in December on a month-on-month basis, according to the bureau.

The 2012 PPI dropped 1.7 percent from the previous year. Meanwhile, the NBS said China's consumer price index (CPI), a key gauge of inflation, grew 2.5 percent in December year on year.