In November, consumer prices (CPI) in China decreased by 0.5% year-on-year, which is the maximum decline since November 2020. This figure exceeded the consensus forecast, which assumed a 0.1% decline in prices last month. In October, prices also fell by 0.2%. The cost of food in China fell by 4.2% in November, which was the highest decline in more than two years. Transportation services also decreased by 2.4%. At the same time, non–food products rose in price by 0.4%, housing prices increased by 0.3%, medical services – by 1.3%, and educational services - by 1.8%. If we exclude food and energy from the calculation, prices rose by 0.6% last month, the same as in October. Producer prices (PPI index) decreased by 3% year-on-year, which was also the highest decline since August. This drop has been observed for the 14th month in a row. Compared to the previous month, the PPI index decreased by 0.3%.
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