China’s consumer price inflation accelerated in November, while factory gate deflation deepened, data from the National Bureau of Statistics revealed on Wednesday.
The consumer price index rose 0.7 percent on a yearly basis in November, following the 0.2 percent increase seen in October. The rate came in line with expectations and hit the highest since early 2024.
On a monthly basis, the CPI was down 0.1 percent, confounding expectations for an increase of 0.2 percent.
Core inflation, which excludes volatile food and energy prices, held unchanged at 1.2 percent in November.
Another report from the NBS showed that producer prices declined 2.2 percent from a year ago in November, after a 2.1 percent drop in the previous month.
Economists were expecting a 2 percent fall for November. Producer price inflation remained negative for 38 consecutive months.
ING economist Lynn Song said the recent positive momentum on the CPI could actually eke out a tiny positive read for 2025 as a whole.
“We don’t think inflation is likely to constrain the People’s Bank of China’s policy easing next year,” the economist added.
ING expects inflation to move back to positive territory for 2026. This will be positive for those who fear China will be stuck in deflation, Song added.
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