MNI DATA IMPACT: China Nov CPI Negative First In 11-Years

China's inflation fell 0.5% y/y in November, reversing October's 0.5% gain, hitting the lowest level since October 2009 mainly due to declining food prices and the higher comparison base for the same period last year. Analysts had expected 0.0% y/y.

But the core CPI growth, excluding food and energy prices remained stable at 0.5% y/y for five months in a row.

Factory-gate prices narrowed the fall over the previous month due to the rally in international crude oil prices.

Here are the key takeaways from data released by the National Bureau of Statistics on Wednesday:

• Food prices declined 2.0% y/y, reversing October's 2.2% gain, accounting for 0.44 percentage points of the CPI fall.
• Pork prices, the main inflation driver in the past year, fell further by 12.5%, extending the previous decline by 9.7 percentage points due to the continuous recovery in hog production.
• Vegetable prices grew 8.6% y/y, decelerating from the 16.7% growth in October as supply recovered.
• On a monthly basis, the CPI fell 0.6%, further expanding the 0.3% fall in October.
• The PPI was -1.5% y/y, narrowing from the 2.1% fall in October. The figure outshone the -1.8% forecast.
• The PPI grew 0.5% m/m, 0.5 percentage point quicker than in the previous month, with prices in petroleum-related industries increasing due to rising crude oil prices.