China's Inflation Falls Deeper Into Negative Territory
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Consumer inflation fell deeper into deflationary territory, with the steepest year-on-year decline since November 2020 due to food price deflation.
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Factory-gate prices declined for the 14th straight month in November, with the biggest declines in energy and metal prices.
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Core inflation remained unchanged at 0.6% in November, with low core goods inflation reflecting price cutting by manufacturers.
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Analysts expect Chinese inflation to stay low in the near term, but don't think it will enter a deflationary spiral.
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Deflationary pressure has heightened as domestic demand remains weak, highlighting the need for more supportive fiscal policy.