China's November CPI Rises 0.2%, Below Expectations
Concerns Over Deflation Persist Despite Economic Stimulus Measures
China's nationwide Consumer Price Index (CPI) for November rose by 0.2% year-on-year, the National Bureau of Statistics of China announced on the 9th.
This figure is below both the Wall Street Journal (WSJ) forecast of 0.5% and the 0.3% increase recorded in October. Compared to the previous month, it fell by 0.6%.
The core CPI, which excludes the highly volatile food and energy prices, increased by 0.3% year-on-year.
Despite recent economic stimulus measures by the Chinese government, concerns about deflation persist. Last month, the Chinese government introduced a 10 trillion yuan plan to ease the financial burden on local governments, but its effectiveness is considered limited. According to foreign media, Chinese government advisors have set the 2025 economic growth target at 5% and are calling for strong fiscal stimulus measures to mitigate the impact of U.S. tariff hikes on exports.
By category, prices for food, tobacco, and alcohol rose by 0.9% year-on-year. Fresh vegetable prices increased by 10%, while fresh fruit prices fell by 0.3%. Pork prices rose by 13.7%, whereas beef and lamb prices declined by 13.5% and 5.3%, respectively.
Non-food prices and consumer goods prices remained unchanged year-on-year, while service prices increased by 0.4%.
The Producer Price Index (PPI) for November fell by 2.5% year-on-year, marking the 26th consecutive month of decline. However, the rate of decline narrowed by 0.4 percentage points compared to October (-2.9%). This decrease was also slightly less than economists' forecast of a 2.8% drop.
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The National Bureau of Statistics stated, "In November, factors such as high temperatures and reduced travel demand led to a month-on-month decrease in the nationwide CPI." Regarding the PPI, it said, "A series of stimulus measures worked together to shift domestic industrial goods demand from a month-on-month decline to an increase, and the year-on-year rate of decline also narrowed."
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