Posted on 13 Dec 2022
For November, China's Consumer Price Index (CPI) rose 1.6% on year but fell 0.2% on month, while its Producer Price Index (PPI) dropped 1.3% on year though inched up 0.1% on month, according to the latest release from the country's National Bureau of Statistics (NBS) on Friday morning.
China's CPI posted an on-month decline in November after rising for two straight months, and its on-year growth also narrowed from October, as domestic consumer demand waned amid new COVID outbreaks nationwide last month, according to Dong Lijuan, a senior statistician with the NBS.
Among key elements, Chinese prices of fresh vegetables fell 8.3% on month and 21.2% on year in November, with both decreases being larger than October, the NBS data showed. Compared with the same period last year, domestic vegetables supply was more abundant last month due to higher temperatures, Dong noted.
Chinese pork prices also stopped rising and dropped 0.7% on month in November as the central government continued to deliver pork reserves to the market to cool the prices, according to Dong. And on a yearly basis, pork prices gained 34.4%, with the increment being 17.4 percentage points smaller than October.
"Most pig farmers hoped to sell as much as they could at current prices, for fear that the prices would drop further after the government releases more pork reserves," an agricultural analyst from a Shanghai-based futures company told Mysteel Global.
"And pork consumption turned weak last month because the country's logistics had faced challenges under COVID prevention and containment measures," he added.
Regarding China's PPI in November, its on-month increment shrank from October, while its on-year drop stayed unchanged, the NBS data showed.
In November, Chinese steelmaking and fabrication sector saw its ex-works prices slide 1.9% on month and 18.7% on year because domestic steel demand remained lackluster overall, Dong noted.
Meanwhile, prices in the country's coal mining and processing industry edged up 0.9% on month in November but fell 11.5% on year, as the Chinese government strengthened its efforts to ensure coal supply, according to Dong.
As for the oil and natural gas drilling industry, those prices in the sector gained 2.2% on month and 16.2% on year, the NBS data showed.
Over January-November, China's CPI rose 2% on year, while PPI gained 4.6%, according to NBS' latest statistics.
Source:Mysteel Global
