MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y
China's Consumer Price Index rose 0.2% y/y in November, slowing for the third straight month from October's 0.3% and reaching a five month low, underperforming expectations by 20 basis points, while core CPI continued to rebound to 0.3%, data from the National Bureau of Statistics showed Monday.
CPI fell 0.6% m/m, falling further from October’s 0.3% decline, mainly due to the 2.7% drop in food prices, which was 2.5 percentage points deeper than the average level over the same period in the past decade, as warmer weather boosted supply, the NBS said, noting November national average temperature was the highest since 1961. Non-food prices fell 0.1% m/m amid off-season for tourism.
PPI declined 2.5% y/y, narrowing from last month’s 2.9% fall and marking the 26th consecutive negative read, beating the market consensus of a 2.8% fall. PPI rose 0.1% m/m, reversing from October’s 0.1% fall, as domestic demand for industrial products recovered as additional pro-growth policies kicked in.