China’s consumer prices rose for a second straight month in November, with inflation hitting its highest level in nearly two years, in a tentative sign that the country’s persistent deflationary pressure may be starting to ease.
The national consumer price index (CPI), a major gauge of inflation, rose 0.7 per cent year on year last month, the largest increase recorded since early 2024, according to data released by the National Bureau of Statistics on Wednesday.
The reading was slightly above market expectations, with a poll by financial data provider Wind forecasting a 0.69 per cent rise. In October, the CPI rose 0.2 per cent year on year, supported by demand during the long “super golden week” public holiday.
Dong Lijuan, a senior statistician at the bureau, said the improvement had largely been driven by an increase in food prices, which rose 0.2 per cent in November after declining 2.9 per cent in October.
China’s producer price index (PPI), which tracks factory-gate prices, contracted for a 38th consecutive month in November, falling 2.2 per cent year on year.
However, the PPI did rise by 0.1 per cent compared with the previous month, with the bureau saying the government’s efforts to reverse persistent deflationary pressure were starting to pay off.
“The comprehensive measures to address ‘involutionary’ competition have yielded tangible results, with year-on-year price declines in relevant sectors narrowing,” Dong said in a statement.