(NBS) China posted a 2.3% year-over-year increase in consumer prices in November, a lower-than-expected jump of 2.5%, but above October’s gain of 1.5%.
Factory-gate inflation eased in November, with the producer prices up 12.9% from the prior year, above the projected increase of 12.4% but below a gain of 13.5% in October.
The slowdown in China’s factory prices reflects government interventions and crackdowns, with the state expected to unleash more stimulus to boost slowing growth. Factory prices still remain high, with costs in coal mining and washing up 88.8% this year.
Zhou Hao, a senior economist at Commerzbank, says Chinese PPI may have peaked, but the rate at which it may come down remains uncertain.
China still faces economic headwinds, including the property sector crisis, with the authorities expecting growth of above 5% next year, while consumer inflation is projected at 3%.
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