China's CPI up 0.7% in November, highest since last March

China's consumer inflation picked up in November, with the Consumer Price Index (CPI) rising 0.7 percent year on year, according to the official data released Wednesday. The reading marks the highest level since March 2024 and represents a 0.5-percentage-point increase from October's growth rate.

The National Bureau of Statistics (NBS) said the wider year-on-year gain was primarily driven by food prices, which shifted from declines in previous months to an increase in November. Excluding food and energy categories, core CPI rose 1.2 percent, staying above 1 percent for the third consecutive month – an indication of gradually improving underlying demand.

On a month-on-month basis, CPI fell 0.1 percent, which officials attributed mainly to seasonal declines in service prices following the peak autumn travel period.

The Producer Price Index (PPI) edged up 0.1 percent month on month, extending gains for a second consecutive month. Dong Lijuan, chief statistician at the NBS, attributed the gain to seasonal increases in domestic demand as regions entered their winter heating period, which lifted prices in certain industries. Dong also noted that import-driven factors contributed to diverging price trends between nonferrous metals and petroleum-related products.

Despite the month-on-month uptick, PPI fell 2.2 percent year on year, largely because of a high comparison base from the same period last year, according to Dong.