China’s consumer inflation rate dropped to a five-month low in November, missing expectations as the economy slows. The country’s consumer price index rose 0.2% from a year ago, less than the predicted 0.5%. Core inflation, excluding food and fuel prices, increased 0.3%, but pork and fresh vegetables prices rose 13.7% and 10.0% respectively.
China’s producer price index declined for the 26th month, falling 2.5% year-on-year in November. This is slightly less than the estimated 2.8% decline predicted by analysts polled by Reuters.
Despite Beijing’s efforts to stimulate the economy through interest rate cuts and support for key sectors, deflation remains a significant challenge. Analysts at Maybank and Standard Chartered Bank believe that China will continue to experience near-zero retail inflation in 2025 due to sluggish domestic demand.
However, other parts of the Chinese economy have shown signs of recovery, with retail sales beating expectations in October and manufacturing activity expanding for two consecutive months. Top leaders will convene at the annual Central Economic Work Conference starting Wednesday to outline economic goals and stimulus measures for 2025.
Fitch Ratings has revised down its forecast for China’s GDP growth in 2025 to 4.3% from 4.5%, citing a sharp protectionist turn in US trade policy towards China as a key risk factor.
Source: https://www.cnbc.com/2024/12/09/china-consumer-prices-climb-less-than-expected-as-economy-slows-amid-trade-war-worries.html