China’s consumer prices rose for a second straight month in November, with the inflation rate hitting its highest level in nearly two years, suggesting that persistent deflationary pressures may be easing. The increase was largely driven by rising food prices, while factory-gate prices continued to decline. Data from the National Bureau of Statistics shows a 0.7 per cent year-on-year rise in the consumer price index.
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.
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. “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.
This development is seen as an initial indication of recovering domestic demand, though factors like exports and import growth remain challenging. Sectors such as wind energy in Beijing also show signs of easing price pressures, but overall economic indicators require close monitoring.