China's CPI climbs 0.2% in Nov amid rising consumer confidence

December 10, 2024 (MLN): China's Consumer Price Index (CPI) rose by 0.2% year-on-year in November due to stronger consumer confidence, official data showed on Monday, according to the National Bureau of Statistics .

The figure was down from the 0.3% increase registered in October, largely due to slower food price rises, NBS chief statistician Dong Lijuan told media.

The price of pork, a staple meat in China, jumped 13.7% from a year earlier in November, down from a 14.2% rise in October.

Prices of fresh vegetables rose 10% year on year in November, compared with a 21.6% increase in October.

The core CPI, which excludes food and energy prices, rose 0.3% from a year ago in November, up from 0.2% in October.

On a monthly basis, the CPI slipped 0.6% in November, following a 0.3% decrease in October.

From January to November, the average CPI increased by 0.3% compared to the same period last year.

China's CPI is projected to experience a year-on-year increase as meat demand is expected to rise.

Additionally, cold winter weather may disrupt vegetable supplies, pushing up food prices, according to Wen Bin, chief economist at China Minsheng Bank.

China has implemented a series of heavyweight growth-boosting measures, including massive consumer goods trade-ins, to bolster the economy this year.

A suite of incremental policies will continue to be utilized to improve domestic demand and boost consumer confidence, which will likely also drive up the core CPI, Wen told Shangai Daily.

The NBS data also showed the country's producer price index (PPI), which measures costs for goods at the factory gate, went down 2.5% year on year in November, narrowing from the 2.9% decline in October.

On a month-on-month basis, the PPI turned to an increase of 0.1% last month from a decrease of 0.1% in October.

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