China’s factory gate inflation eases
BEIJING: China’s factory inflation slowed in November, a sign demand remains weak amid Beijing’s ongoing trade war with the US, while consumer inflation also flagged, official data showed yesterday.
The producer price index – an important barometer of the industrial sector that measures the cost of goods at the factory gate – climbed 2.7 per cent on-year in November.
It ticked down from 3.3 per cent the previous month, recording its weakest growth since October 2016, while remaining in line with the forecast in a Bloomberg News survey.
A slowdown in factory gate inflation reflects sluggish demand.
The consumer price index (CPI) – a key measure of retail inflation – rose 2.2 per cent on-year, compared with 2.5 per cent in October.
Food prices, up 2.5 per cent, rose quicker than non-food prices, which were up 2.1 per cent. Energy prices fell over the month.
“The broad moderation in inflationary pressures appears to be a reflection of weaker demand growth over the past half a year and should alleviate concerns about possible stagflation,” said Goldman Sachs Economic Research in a report.
The weak figures come as China’s trade war with the US continues to bite and its economy shows signs of slowing.
The Asian giant recorded growth domestic product ( GDP) growth of 6.5 per cent in the third quarter – its weakest in nine years. — AFP