China Inflation Eases Unexpectedly To 5-Month Low; PPI Falls
(RTTNews) - China's consumer price inflation eased unexpectedly to a five-month low in November and producer prices continued to fall suggesting that the sequence of stimulus measures initiated by Beijing had limited impact on reviving domestic demand.
The consumer price index posted an annual increase of 0.2 percent, the National Bureau of Statistics reported Monday. Inflation was expected to rise to 0.5 percent from 0.3 percent in October.
The slight rise in November inflation was driven by food prices, which climbed 1 percent. Pork prices surged 13.7 percent and fresh vegetable prices moved up 10.0 percent.
Core inflation that excludes food and energy rose slightly to 0.3 percent in November from 0.2 percent in October.
On a monthly basis, the decline in consumer prices doubled to 0.6 percent from 0.3 percent in October. Economists had forecast a 0.4 percent drop for November.
Data showed that producer prices decreased for the 26th consecutive month. Producer prices fell 2.5 percent on a yearly basis but slower than the 2.9 percent decrease posted in the previous month. Prices were expected to fall 2.8 percent.
With the boost from stimulus likely to be short-lived and the fundamental causes behind the imbalance between supply and demand not being adequately addressed, much upside to inflation is unlikely going forward, Capital Economics' economist Gabriel Ng said. The economist expects inflation to average just 0.5 percent in 2025 and 2026.
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