Consumer inflation rises in China, producer inflation falls

China’s National Bureau of Statistics said on Thursday that the producer price index fell 1.3 percent on-year in November. Economists polled by Bloomberg had expected a 1.5 percent drop in prices.

The CPI, on the other hand, fell from 2.1 percent in October, in line with economists’ forecasts. The CPI was 1.6 percent in November. Annual subjacent inflation, which does not include variable food and energy prices, remained at 0.6 percent.

The monthly CPI in China was -0.2 percent. Food prices in the country, on the other hand, fell 0.8 percent monthly, reversing the 0.1 percent increase in October.

“Economic momentum is weakening”

“The data shows that the economic momentum continues to weaken,” said Zhang Zhiwei, chief economist at asset management firm Pinpoint Asset Management, who assessed the inflation data.

“I hope the government will provide more support to boost market and household confidence,” Zhiwei said. “The rapid pace of reopening demonstrates the government’s sense of urgency,” he said.