China's consumer price index (CPI) continued to signal deflationary pressures, with year-on-year figures rising just 0.2% in November, coming in below expectations of 0.5% and posting the slowest pace in five months.
On a more positive note, the producer price index (PPI) showed less deterioration, falling 2.5% versus 2.8% expected.
While November marked the 26th consecutive month of deflation, the PPI’s year-on-year contraction moderated, showing its best performance in three months.
The data highlights China's ongoing economic challenges, driven by weak domestic demand and declining prices across multiple sectors.
Despite recent government stimulus efforts, including measures to alleviate local government debt burdens, both consumer and producer prices have remained under significant pressure.
