China CPI inflation shrinks more than expected in Nov, PPI down
2024.12.09 00:16
Investing.com– Chinese consumer inflation shrank more than expected in November as a swathe of recent stimulus measures did little to offset a stubborn deflationary trend, while producer inflation also contracted.
inflation shrank 0.6% month-on-month in November, government data showed on Monday. The reading was softer than expectations for a drop of 0.4% and worsened from the 0.3% contraction seen in the prior month.
grew 0.2% year-on-year, less than expectations of 0.5% and weakening from the 0.3% growth seen in the prior month.
The reading indicated that while some facets of China’s economy had picked up amid aggressive stimulus measures from Beijing, consumer spending remained fragile. This lent more credence to growing investor calls for more targeted, fiscal measures aimed at shoring up private consumption.
But soft data showed factory gate inflation also remained subdued, despite a mild improvement in business activity through November. PPI inflation shrank 2.5% in November, slightly better than expectations for a drop of 2.8% and improving from the 2.9% seen in October.
But the reading marked over two years of consistent declines in PPI inflation, as China’s factories struggled with sluggish local demand.
Focus is now on two key political meetings in China in December, which are expected to shed more light on the economic outlook and Beijing’s plans for stimulus.
