Factory-gate prices in China fell for a consecutive second month in November. Meanwhile, consumer inflation slowed.
A Reuters report on December 12 shows weak activity and demand in an economy that has been held back by the Chinese regime’s draconian pandemic control measures.
China’s National Bureau of Statistics (NBS) reported on December 9 that the producer price index (PPI) fell 1.3% year-on-year. This decrease is equivalent to the decline in October.
In addition, November’s consumer price index (CPI) increased at the slowest pace in eight months, with an increase of 1.6 percent year-on-year, lower than the 2.1 percent increase in October.
Zhiwei Zhang, the chief economist at Pinpoint Asset Management, said, “These data suggest the economic momentum [of China continues] to weaken.”
A meeting of CCP’s Politburo on December 6 concluded that in 2023, the Chinese government would focus on stabilizing growth, boosting domestic demand, and opening up to the outside world.
Zhang said that although the Chinese government has eased measures to control the COVID pandemic in the past few days, it will need to take more steps to boost the economy.
He added, “The Politburo meeting … identified weak confidence as a major problem for the economy.”