China’s November CPI slows from October, while PPI declines

China’s consumer price index (CPI) rose 1.6% year-on-year in November, according to the National Bureau of Statistics (NBS). That slowed from October’s 2.1% growth and was in line with analysts’ expectations.

The producer price index (PPI) fell 1.3% year-on-year in November. Following a decline of 1.3% in Oct.

The slowdown in China’s CPI and PPI reflects the weakness in economic activity and domestic demand due to the impact of the COVID-19 measures. The government’s strict lockdown measures to control the outbreak are affecting manufacturing and people’s travel.

Previously, NBS reported that China’s manufacturing purchasing managers’ index stood at 48 points in November, down from 49.2 points in October, reflecting the impact of the ongoing lockdowns. The services PMI, which measures business activity in the service sector, was 46.7 in November, down from 48.7 in October. Both China’s manufacturing and service sectors are down.

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