China’s consumer-price gains moderated slightly in November, but Beijing’s ambitious plans to give market forces a greater role could boost inflation in the world’s second-largest economy next year.
The November consumer-price index was up 3% from a year ago, slowing down slight from October’s 3.2% pace, the statistics bureau said Monday. That was just below market expectations of a 3.1% rise and well within the government’s target of 3.5% inflation for the year.
But at a major policy-setting meeting last month, leaders of China’s Communist Party adopted a broad package of changes that pledged to give market forces a “decisive role” in setting prices for resources like oil, natural gas, electricity and water. China has kept control of those prices under a policy that generally benefits important state companies as well as households across the nation but encourages inefficiency and waste.
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