KURE - China's worries over deflation deepens as consumer prices fall at the steepest pace in three years
2023-12-11 03:06:28 ET
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The data released over the weekend showed that consumer prices in the country fell 0.5% Y/Y in November, accelerating from a 0.2% drop in October and coming in worse than the 0.1% forecast.
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This marked the fastest decline in the CPI since November 2020, as the cost of food decreased at the strongest pace in over two years (-4.2% vs -4.0% in October) amid a further fall in pork prices.
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Core consumer prices, which exclude prices of food and energy, increased by 0.6% y/y in November, the same as in October. Monthly, the CPI also dropped by 0.5%, compared with consensus and October's figure of a 0.1% decrease.
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Producer prices also fell 3% y/y in November, faster than a 2.6% fall in the previous month and compared with market estimates of a 2.8% decline.
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This marked the 14th straight month of PPI decline and the quickest since August. The persistent deflationary pressures in China indicated continuing economic weakness amid softening domestic demand.
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Considering the first 11 months of the year, they were down by 3.0%.
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Investors now look ahead to more economic data this week including retail sales and industrial output and loan prime rate decisions from China’s central bank this week for further guidance.
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China's worries over deflation deepens as consumer prices fall at the steepest pace in three years