China Inflation Rate Rises to 7-Month High in November


Consumer prices in China rose 2.3 percent year-on-year in November of 2016, compared to a 2.1 percent rise in October while market expected a 2.2 percent gain. It was the highest inflation rate since April, as the politically sensitive food prices increased by 4.0 percent while non-food cost rose at a slower 1.8 percent. Cost of consumer goods gained 2.1 percent and those of services advanced 2.4 percent.

Among food, prices rose for at a faster pace for: fresh vegetables (+15.8 percent from +13.0 percent in September) and pork (+5.6 percent from +4.8 percent). Prices also went up for fresh fruits (+2.8 percent from +6.0 percent). In contrast, cost fell for: eggs (-2.2 percent from -2.4 percent), milk (-0.2 percent from -0.2 percent) and tobaco (-0.1 percent from -0.1 percent).

For non-food categories, cost went up for most categories: clothing (+1.4 percent from +1.3 percent); rent, fuel & utilities (+2.0 percent from +1.8 percent), household equipment supplies and services (+0.3 percent from +0.4 percent), education, culture and entertainment (+2.2 percent from +2.1 percent), healthcare (+4.4 percent from +4.8 percent) and other goods and services (+4.2 percent from +3.6 percent). Cost of transport remained unchanged, compared to a 0.4 percet fall in the prior month.

For 2016, the government sets inflation target at around 3 percent.

On a monthly basis, consumer prices rose 0.1 percent, after declining 0.1 percent in a month earlier and in line with consensus.

The producer prices index rose 3.3 percent year-on-year in November, following a 1.2 percent increase in the preceding month and beating market consensus of a 2.2 percent gain. It was the third straight month of increase and the fastest since October 2011.



Statistics China l Rida Husna | rida@tradingeconomics.com
12/9/2016 2:10:50 AM