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China Consumer Inflation Hits Near Two-Year High Despite Deeper-than-Expected Producer Deflation

Consumer inflation rose to 0.7% in November, the highest in nearly two years, while producer prices fell 2.2%, extending deflation for 38 months, official data showed.

  • On Dec 10, the National Bureau of Statistics reported China’s consumer price index rose 0.7% year-on-year in November, the fastest increase since February last year.
  • Factory-Gate data showed factory-gate prices fell 2.2% year-on-year, extending producer deflation into its 38th month amid oversupply and a protracted downturn in the housing sector.
  • Detaling components of the CPI, NBS statistician Dong Lijuan noted core CPI was unchanged at 1.2, while gold jewellery prices surged 58.4%.
  • With policymakers preparing to meet, the Politburo named expanding domestic demand and rebalancing supplies top priorities for 2026, while investors and economists watch the Central Economic Work Conference; Lisheng Wang said, "Although policymakers maintained their easing bias, they appeared less inclined towards broad-based stimulus measures."
  • Economists warned deflationary pressure will persist into next year as the GDP deflator declines for over two years, while China amassed more than $1 trillion in trade surplus in the first 11 months.
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Watauga DemocratWatauga Democrat
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China consumer prices pick up pace but demand still slack

Rising food costs pushed consumer inflation in China last month to its fastest pace in nearly two years, data showed Wednesday, but lower factory-gate prices suggested demand in the world's second-largest economy remains weak.

·Calhoun, United States
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YUAN TALKS broke the news in on Tuesday, December 9, 2025.
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