China's consumer price index (CPI) rose 0.7% year-on-year in November, marking the highest increase since March 2024, according to data released by the National Bureau of Statistics (NBS) on December 10. The core CPI, which excludes food and energy prices, increased by 1.2% year-on-year, indicating a steady recovery in consumer demand.
The rebound in CPI was primarily driven by food prices, which turned positive with a 0.2% increase after a 2.9% decline in October. This shift contributed 0.06 percentage points to the CPI growth. Energy prices fell by 3.4%, with gasoline prices dropping 7.5%. Meanwhile, services and non-energy industrial goods prices rose by 0.7% and 2.1%, respectively, adding 0.29 and 0.53 percentage points to the CPI.
Fresh vegetable prices surged 14.5% year-on-year, marking their first increase after nine consecutive months of decline, largely due to supply constraints caused by cold waves in northern China and continuous rainfall in the south. Fruit prices also edged up 0.7%, while beef and lamb prices rose 6.2% and 3.7%, respectively. Pork prices continued to decline but at a slower pace of 15.0%, compared to 16.0% previously. Egg prices dropped further to -12.5%.
On a month-on-month basis, CPI dipped 0.1% in November, with urban areas seeing a 0.1% decline and rural areas remaining flat. Food prices rose 0.5%, while non-food prices fell 0.2%. Consumer goods prices edged up 0.1%, but services prices dropped 0.4%.
The producer price index (PPI) showed a mixed trend, with a 0.1% month-on-month increase but a 2.2% year-on-year decline. The slight monthly uptick was attributed to seasonal demand and policy-driven adjustments in certain industries. Coal mining and washing prices rose 4.1%, while gas production and supply prices increased 0.7%. However, glass prices fell 7.1%, and coking coal and coke prices dropped 2.7% and 2.0%, respectively.
NBS data revealed that PPI for production materials declined 2.4%, dragging down the overall PPI by 1.79 percentage points. Consumer goods prices fell 1.5%, with food prices down 1.5% and durable goods prices dropping 3.6%.
The "anti-involution" policies aimed at reducing excessive competition in key industries showed partial success, with price declines narrowing in sectors like coal mining, photovoltaic equipment, and lithium battery manufacturing. Emerging industries, including new materials and AI-driven robotics, saw price increases, reflecting robust demand growth.
As China's macroeconomic policies continue to take effect, price trends are showing positive signs of stabilization and recovery.
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