China CPI rises in Nov but producer price deflation persists
By Frank Prenesti
Date: Wednesday 10 Dec 2025
(Sharecast News) - Chinese consumer inflation rose to its highest level in almost two years in November, driven by a higher-than-expected jump in food prices, but producer deflation remained persistent.
Inflation rose to 0.7% year on year in November, up from 0.2% in October, broadly in line with consensus forecasts - marking a 21-month high.
On a monthly basis, CPI dipped 0.1%, against a 0.2% rise in October and a forecast rise of 0.2%. Food prices rose 0.5% month on month as the price of fresh vegetable surged 7.2% month on month to reach 14.5% on an annual basis.
Core inflation - which strips out food and energy prices - stabilised at 1.2% year on year in November after six months of acceleration.
"The lift from food prices could continue in the coming months, where we expect China's pork price cycle to turn again. Currently, pork prices (-15.0%) continue to weigh on food inflation, and this effect is likely to reverse next year," said analysts at ING.
The producer prices index fell 2.2% year-on-year in November, compared with a 2.1% fall in October and worse than a forecast for a 2% drop. Coal mining and the washing industry saw prices fall 11.8% from a year ago, while the oil and gas extraction sector recorded a 10.3% decline.
Government officials are struggling to curb oversupply in several sectors of the economy where firms are heavily discounting to stay competitive. Combined with a weak jobs market and a crisis in the housebuilding sector presents a deflationary headache for policymakers.
Reporting by Frank Prenesti for Sharecast.com
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