Factory door prices in China fell at a slower pace in November, adding to signs that the world’s second-largest economy is recovering from the COVID pandemic. -19, but consumer prices unexpectedly declined for the first time in more than a decade.The producer price index fell 1.5% compared to the previous year, the National Statistics Office said Tuesday. The drop was less than the 1.8% expected in a . poll and the 2.1% recorded in October.
Consumer prices fell year-on-year for the first time since October 2009 due to falling pork prices, as supply rebounded from the African swine fever of recent years.
The consumer price index (CPI) fell 0.5% in November from a year earlier, after rising 0.5% in October. The index was below even the lowest projection in a . poll, with forecasts ranging from -0.3% to + 0.5%.
“This was almost entirely due to improvements in pork supply and is not a sign of lower demand,” said Julian Evans-Pritchard, China chief economist at Capital Economics, referring to the decline in the year-on-year CPI. .
“We believe that the PBOC (People’s Bank of China) will examine this and focus on core inflation, which is likely to rebound in the coming months as economic activity remains strong.”
China has seen a sustained revival after the coronavirus crisis, with exports and manufacturing activity increasing rapidly in November. However, there is some concern that the recovery will be uneven, as certain sectors face a rise in the yuan and still tepid global demand.
However, the recent spike in upbeat publications has raised some speculation that the central bank may tighten monetary policy, though officials say they are in no rush given the uncertainties that linger around the pandemic.
