China CPI inflation rose to 2.0% yoy in November9 December, 2012, 22:49. Posted by Zarathustra
China’s CPI inflation increased slightly in November.
Headline CPI inflation rose to 2.0% yoy from 1.7% yoy in October, slightly lower than consensus estimate of 2.1% yoy. On a month-on-month basis, CPI increased by 0.1% compared to the previous month, up from -0.1% in October.
Looking into different components, inflationary pressure remains minimal for non-food items, which rose 1.6% yoy, or flat on a month-on-month basis, while food prices rose 3.0% yoy, or 0.1% on a month-on-month basis.
Meanwhile, producer price index (PPI) fell 2.2% yoy in November, lower than consensus estimate of -2.0% yoy. On a month-on-month basis, PPI fell 0.1%, down from +0.2% rise in October.
These are consistent with our view that there should be very little inflationary pressure in non-food items after years of over-investment in productive capacity, while food prices inflation remain relatively stable for the moment.