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Wednesday, December 9, 2015, 11:04

China's November inflation grows 1.5%

By Xinhua

China's November inflation grows 1.5%
Source: National Bureau of Statistics.

BEIJING - China's consumer price index, a main gauge of inflation, grew 1.5 percent year on year in November, up from a rise of 1.3 percent in October, official data showed Wednesday.

The reading was slightly higher than a 1.4-percent increase for the first 11 months, the National Bureau of Statistics (NBS) said in a statement.

The NBS attributed the rise mainly to rising food prices, as vegetable prices surged 9.4 percent year on year last month, while prices for meat and poultry products rose 6.2 percent.

On a monthly basis, consumer prices stayed flat.

Last month, the producer price index, which measures wholesale inflation, plunged 5.9 percent year on year last month, marking the 45th straight month of decline and showing continued weak market demand.

At the same time, China's producer price index (PPI), which measures wholesale inflation, dropped 5.9 percent year on year in November.

Producer prices

China's producer prices fell for the 45th straight month but at a narrower rate against market expectation, NBS data showed on Wednesday.

The producer price index (PPI), a measure of costs for goods at the factory gate, dropped 5.9 percent year on year, and the decline was slightly less than the 6-percent market forecast and unchanged from the rate seen in the last three months.

Month on month, PPI in November edged down 0.5 percent mainly due to price drop in the non-ferrous metal smelting and oil processing industry. The index fell 5.2 percent from a year ago in the Jan.- Nov. period.

Output prices of production materials fell 7.6 percent in November, contributing 5.8 percentage points of the PPI drop, while those of consumer goods edged down 0.4 percent during the period.

The data came along with the release of the consumer price inflation index, which rose 1.5 percent in November, beating market forecast of 1.4 percent and the 1.3-percent rise in October.

Deflation pressure remains in China despite the better-than-expected PPI and CPI data, said HSBC analyst Qu Hongbin, projecting further monetary easing policies.

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