Mainland economy sees producer deflation again - RTHK
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Mainland economy sees producer deflation again

2022-12-09 HKT 12:55
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  • For the second month in a row, the producer price index was down 1.3 percent year on year. File photo: AFP
    For the second month in a row, the producer price index was down 1.3 percent year on year. File photo: AFP
China's factory-gate prices showed an annual fall for a second month in November while consumer inflation slowed, indicating weak activity and soft demand.

Analysts said they expected the government to keep interest rates low and take measures to boost confidence.

The producer price index was down 1.3 percent on a year earlier, unchanged from an annual contraction seen in October, according to National Bureau of Statistics data issued on Friday.

The November consumer price index rose at its slowest pace in eight months, climbing 1.6 percent from a year earlier.

Food prices reversed the 0.1 percent gain in October to fall 0.8 percent month-on-month. The price of pork edged down 0.7 percent in November from the previous month, but still saw a 34.4 percent increase year on year.

"These data suggest the economic momentum (continues) to weaken," said Zhang Zhiwei, chief economist at Pinpoint Asset Management.

A Politburo meeting on Tuesday emphasised that in 2023 the government would focus on stabilising growth, promoting domestic demand and opening up to the outside world. (Xinhua/Reuters)