In November, Chinese factory-gate prices fell on an annual basis for the second month in a row, while consumer inflation slowed, both of which pointed to sluggish economic activity and weak demand.
According to data released by the National Bureau of Statistics on Friday, the producer price index (PPI) was down 1.3% from a year earlier, which is the same annual decrease seen in October. That was much less rapid than the predicted drop of 1.4% in a Reuters poll.
The nation’s consumer price index rose 1.6% in November on an annualized basis, in line with expectations and down from 2.1% in October.
The People’s Bank of China has stated that it expects consumer inflation to remain moderate next year.
The November producer price deflation and milder consumer price inflation were accompanied by record Covid-19 infections and related curbs that disrupted production and limited mobility.