China's consumer price index (CPI) edged higher in November but still only modestly escaped deflation, underlining concerns the nation's huge economy has yet to fully recover from consumer and property-sector weaknesses triggered in the pandemic era.
China's headline CPI rose 0.7% on year in November, up from a 0.2% on rise in October, reported the National Bureau of Statistics (NBS) on Wednesday.
The nation's CPI core, that strips out certain food and energy bills, rose 1.2% on year in November, unchanged from October's gain.
The price of housing in November remained unchanged on year, while the cost of transportation and communication fell by 2.3%, according to official figures.
Moreover, the nation's CPI fell 0.1% in November from October, while the price of services declined 0.4% on month, added the NBS.
Though China's economy remains saddled by weak consumer sentiments and still-declining residential values, the overall CPI may be firming up, said ING Think, an arm of the Dutch investment house.
"The recent positive momentum on the CPI could actually eke out a tiny positive read for 2025 as a whole," said ING Think. "We expect China's CPI inflation will move back to positive territory for 2026. This will be positive for those who fear China will be stuck in deflation."
Separately, China's producer price index (PPI) fell 2.2% on-year in November, after a 2.1% on-year decline fall in October, added the NBS.
The still-soggy price series could provoke Beijing to more economic stimulus in 2026, said ING Think.
Generating economic growth next year in China "will likely require another wave of policy support in the early months of next year. As such, we are pencilling in 20 basis points of rate cuts (by the People's Bank of China) in 2026," said ING Think.
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