China: Inflation slows in November

Consumer prices fell 0.3% from the previous month in November, contrasting October’s 0.2% increase and marking the lowest print in eight months. The reading was primarily driven by sharp falls in prices for fresh vegetables, tourism and fuel for vehicles.

Inflation declined from October’s 2.5% to 2.2% in November, which was below the 2.4% that market analysts had expected. Annual average inflation stabilized at October’s 2.1% in November.

Producer price inflation, meanwhile, slowed to 2.7% in November from 3.3% in October, just in line with market analysts’ expectations. Easing producer price inflation reflects a slowdown in domestic demand.

China Inflation Forecast

FocusEconomics Consensus Forecast participants expect that consumer inflation will average 2.3% in 2019, which is unchanged from last month’s estimate. In 2020, the panel also sees consumer inflation at 2.3%. Meanwhile, the panel expects producer inflation to be 2.3% in 2019, which is unchanged from last month’s projection. In 2020, panelists see producer inflation at 1.8%.