China’s National Bureau of Statistics reported on Dec. 9 that its Consumer Price Index in November increased 2.3% year-on-year. It was the highest level in 15 months.
Food prices increased by 1.6% year on year, and non-food prices climbed up 2.5%.
The consumer price index (CPI) is used to measure inflation. If CPI growth is more than 3%, it indicates inflation. 5% growth suggests severe inflation.
Because official CCP statistics are often skewed, it could be that China’s real consumer price index growth rate is much higher.
Previously, in a survey of 15 institutions conducted by Caixin.com, economists’ median forecast value for full-year CPI growth was 2.7%, with forecasts ranging from 2.4% to 2.4% and 3.4%.
An official statement of the Chinese Communist Party said food prices decreased by 2.4% in October and increased by 1.6% in November, affecting the overall CPI by about 0.3%.
The pork price fell by 32.7%, 11.3% narrowed compared to October. Vegetable prices rose by 30.6% and 14.7 percentage points compared to October. Costs of eggs, freshwater fish, and vegetable oils increased by 20.1%, 18.0%, and 9.7%, respectively.
Non-food prices increased by 2.5% year-on-year, up 0.1 percentage points from October, affecting the consumer price index by about 2.04 percentage points.
Meanwhile, the producer price index (PPI) in November rose 12.9% over the same period last year. But it was 0.6% down from October. The price of production materials grew 17%, and the rate of increase fell by 0.9%.