China: Inflation bounces back in November
December 9, 2012
In November, consumer prices increased 2.0% over the same month the previous year. The print was up from the 1.7% rise observed in October, which had marked the lowest rate since January 2010, but undershot market expectations that had consumer prices increasing 2.1%. The monthly print mainly reflected higher prices for food as well as for clothing.
Despite the higher monthly reading, inflation continued the downward trend in place since February, with annual average inflation easing from 3.0% in October to 2.8% in November.
Meanwhile, in November, the producer price index fell 2.2% over the same month the previous year. The print followed the 2.8% drop observed in October and represented, in fact, the highest reading in five months. Despite the softer drop, annual average producer price inflation deteriorated, falling from minus 1.0% in October to minus 1.4%.