Categories: Markets

The CPI consumer price index weakens to -0.5% year-on-year in November, the first decline since October 2009

The consumer price index China’s CPI fell by -0.6% in November, falling below the -0.2% expected and -0.3% from the previous month.

On a year-on-year basis, the CPI has reached -0.5% in November, marking its first decline to negative territory since October 2009. The index was expected to fall to 0% from 0.5% in the previous month.

Description of the CPI consumer price index

The Chinese consumer price index is published by the National Bureau of Statistics of China and measures the average price change of a basket of goods and services. The CPI is the main element for measuring inflation and changes in buying trends. If the consumer price index rises substantially, it indicates that inflation has become a destabilizing factor for the economy, which may prompt the People’s Bank of China to adjust monetary policy and fiscal risk. Generally, a high result is positive or bullish for the CNY, while a lower reading is negative or bearish.

The result is a complete summary of the results extracted from the urban consumer price index and the rural consumer price index.

The purchasing power of the CNY is affected by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends.

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