China CPI in November Rose 2.3% YoY

SAHNGHAI, Dec 9 - From a month-on-month perspective, the CPI rose 0.4% in November, 0.3 percentage point lower than last month, due to the combined effects of seasonal factors, rising costs and the spreading COVID pandemic. Among them, food prices rose by 2.4% MoM, an increase of 0.7 percentage points over the previous month, affecting the CPI by about 0.43 percentage point. In the food sector, by seasonal consumer demand growth and short-term tight supply of fat pigs and other factors, pork prices reversed the previous declines, up 12.2%; and in light of the measures to ensure the "vegetable basket" supply, with the gradual increase in the number of vegetables on the market, fresh vegetable prices growth dropped 9.8 percentage points from last month. Non-food prices were flat, which rose 0.4% MoM in October. Manufactured consumer goods prices rose 0.3%, which was 0.6 percentage point lower than last month. The prices of gasoline, diesel and liquefied petroleum gas rose 3.1%, 3.3% and 1.2% respectively, all slower than last month; service prices dropped 0.3%. Affected by the reduction in travel after the holidays and spreading COVID pandemic, airline tickets, travel agency charges and hotel accommodation prices fell by 14.8%, 3.8% and 3.7% respectively.

From a year-on-year perspective, the CPI rose 2.3% in the month, an increase of 0.8 percentage points over the previous month. The year-on-year increase expanded more greatly mainly owing to a lower base in the same period last year in addition to the impact of price hikes this month. Specifically, food prices reversed the previous YoY decline of 2.4% to an increase of 1.6%, affecting the CPI increase by about 0.30 percentage points. In details, pork prices fell 32.7%, narrowing 11.3 percentage points from the previous month; fresh vegetables prices rose 30.6%, expanding 14.7 percentage points from the previous month; eggs, freshwater fish and edible vegetable oil prices rose 20.1%, 18.0% and 9.7% respectively. Non-food prices rose by 2.5%, an increase of 0.1 percentage point over the previous month, affecting the CPI increase by about 2.04 percentage points. Among them, prices of manufactured consumer goods rose 3.9%, an increase of 0.1 percentage point on the month. The prices of gasoline and diesel prices rose 36.7% and 40.6%, respectively, and the growth continued to expand; service prices rose 1.5%, an increase of 0.1 percentage points over the previous month.

The core CPI excluding food and energy prices rose 1.2% YoY, down 0.1 percentage point from last month.