China’s Inflation Data: November Trends and Projections

China’s National Bureau of Statistics (NBS) statement on the inflation data:

• In November, policy measures boosted industrial demand, reversing the PPI’s month-on-month decline and narrowing its year-on-year drop.
• China’s November CPI year-on-year increase hits a five-month low, PPI year-on-year decline smallest in three months.
• In November, core CPI, excluding food and energy prices, continued to rise, with a 0.3% year-on-year increase, up by 0.1 percentage points from the previous month.
• In November, influenced by higher temperatures and a decline in travel demand, the national CPI decreased month-on-month but saw a slight year-on-year increase.

Department of applying lipstick to a pig. The numbers were poor:

• China November CPI +0.2% y/y (expected +0.5%) PPI -2.5% y/y (expected -2.8%)

This article was written by Eamonn Sheridan at www.forexlive.com.