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Food inflation drives up November CPI
China's consumer price index (CPI), a main gauge of inflation, quickened to 2 percent in November from a 33-month low of 1.7 percent over the previous month, but remains subdued, the nation's top statistics bureau announced Sunday, extending more bullish sentiment on the world's second largest economy.

China's November inflation rises to 2 pct
China's consumer price index (CPI), a main gauge of inflation, grew 2 percent year on year in November, the National Bureau of Statistics announced on November 9.

Highlighted data:

★ Vegetable prices jumped 11.3 percent year on year in November as cold weather disrupted supplies, pushing the CPI up 0.27 percentage points.

★ China's producer price index, which measures inflation at the wholesale level, fell 2.2 percent year on year in November, the National Bureau of Statistics said on November 9.

★ China's value-added industrial output rose 10.1 percent year on year in November, picking up from 9.6 percent in October, the National Bureau of Statistics announced on November 9.

★ Retail sales in China grew 14.2 percent year on year to 18.68 trillion yuan ($2.97 trillion) in the first 11 months of the year, the National Bureau of Statistics (NBS) said on November 9.

Data

Changes in CPI, year-on-year

                                                                          CPI

Changes in PPI, year-on-year


China's manufacturing purchasing managers index (PMI)


Source: Agencies

Viewpoints

Chinese Media

Financial.ifeng.com quoted economic counselor Fu Peng, saying that the synchronous recovery of both indices shows China's economy is bouncing back and will soon enter a smoother period of recovery.

Economic researcher Yu Yongding suggested in another article on the same website that with the current CPI percentages the government can conduct a looser monetary policy, but should at the same time keep a watchful eye on the real estate market.

Financial commentator Ma Guangyuan echoed Yu's opinion during an interview with the Chinese Radio Network, saying new monetary policy would dictate CPI levels next year.

Zhang Liqun, researcher at the Development Research Center of the State Council, was quoted by China.org.cn as saying that November's slight rebound in manufacturing signals smooth and steady growth in the near future.

Lu Zhengwei, chief economist with the Industrial Bank of China, told the financial website jrj.com.cn that the CPI actually came in weaker than expected, which he attributes to low non-food prices. More

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