China Inflation Rise Driven by Food Price Gains

China’s Consumer Price Index (CPI) rose a tepid 1.5 percent in November from the same period a year ago, data released today showed. The number was slightly above a Reuters poll forecast of a 1.4 percent rise.

China’s Producer Price Index (PPI) dropped 5.9 percent in November on-year, in line with a Reuters poll of economists, the data from the National Bureau of Statistics showed.

CPI was flat on the previous month, while economists had predicted a 0.1 percent fall, while PPI was down 0.5 percent on October.

The November rise in consumer prices was driven by an uptick in the cost of food. Food CPI was up 2.3 percent on-year, while non-food items rose 1.1 percent.

But China’s producer prices fell as the manufacturing sector continued to stagnate, forcing companies to drop their wholesale prices in order to compete to stay in business.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza