China: Inflation tumbles to five-year low in November
December 10, 2014
In November, consumer prices declined 0.2% over the previous month, which followed the flat reading recorded in October. The monthly reading, which represented the steepest fall in seven months, reflected lower prices for transportation and communications, food as well as for recreation and education.
Annual inflation fell from October’s 1.6% to 1.4% in November. The print undershot the 1.6% that market analysts had expected and represented the lowest rate in five years. Consequently, the trend continues to point downward, with annual average inflation inching down from 2.2% in October to 2.1% in November.
Meanwhile, the producer price index fell 2.7% in November over the same month last year (October: -2.2% year-on-year), which marked the lowest rate in 17 months. Moreover, the print exceeded the 2.4% decline that market analysts had expected. The annual average variation of the producer price index inched down from minus 1.6% in October to minus 1.7% in November.