China’s annual inflation rate unexpectedly eased to 0.2% in November 2024, down from 0.3% in the previous month, missing market expectations of 0.5%.
China inflation rate below estimates
This marked the lowest inflation rate since June, signaling growing deflation risks despite recent stimulus efforts by Beijing and the central bank’s accommodative monetary policy. Food prices saw their smallest increase in four months (1.0% vs. 2.9% in October), with slower rises in fresh vegetables and pork. Meanwhile, non-food prices were stable (vs. -0.3% in October), with price hikes in healthcare (1.1% vs. 1.1%) and education (1.0% vs. 0.8%), while transport (-3.6% vs. -4.8%) and housing (-0.1% vs. -0.1%) continued to see declines.
Core figures
Core consumer prices, excluding food and energy, rose 0.3% year-on-year, the highest increase in three months, following a 0.2% rise in October. On a monthly basis, the CPI dropped 0.6%, surpassing the 0.3% fall in October and the 0.4% decline forecasted, marking the sharpest monthly drop since March.
