China: Upward trend in inflation continues in November
December 9, 2016
In November, Chinese consumer prices rose 0.1% from the previous month, contrasting October’s 0.1% decrease. The reading mainly reflected an increase in prices for clothing and footwear as well as for health.
Inflation rose from October’s 2.1% to 2.3% in November, which marked a seven-month high. The print slightly exceeded the 2.2% that market analysts had expected. Annual average growth in consumer prices inched up from October’s 1.9% to 2.0%, which marked a nearly two-year high. Nevertheless, inflation is well below the government’s 3.0% target for the year.
Meanwhile, the producer price index rose 3.3% annually in November, which represented an acceleration from October’s 1.2% increase. The print hit an over five-year high and was above the 2.3% expansion that the markets had expected. The annual average variation of the producer price index rose from October’s minus 3.0% to minus 2.3% in November, which represented the highest reading since January 2015.
Author: Luis Lopez Vivas, Economist