China’s Consumer Price Index (CPI) slowed for the third consecutive month to 0.2% year-on-year in November (Bloomberg estimate: 0.4%; October: 0.3%). Core CPI (excluding food and energy) remained weak at 0.3% year-on-year from 0.2% year-on-year in October. Services inflation was unchanged from October at 0.4% year-on-year, but consumer goods inflation slowed to 0.0% year-on-year (October: 0.2%), said Ho Woei Chen, economist at UOB Group.
Prices remained almost flat in November
“China’s CPI inflation slowed for the third consecutive month to 0.2% year-on-year in November. Sequentially, the accelerated pace of the -0.6% month-on-month decline in November was due to high temperatures that supported agricultural production and the decline in travel demand.”
“PPI deflation moderated to -2.5% YoY in November, while it rose 0.1% MoM in November for the first time in six months. This was attributed to the effects of existing and incremental government policies that boosted demand for industrial products.”
“Overall, the price outlook remains weak and the PBOC is expected to maintain its easing bias. The PBOC indicated another 25-50 basis point reduction in banks’ reserve requirement ratio (RRR) by year-end to stabilize growth.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
