China’s Inflation Stays Well Within Target

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.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.