China consumer price inflation eases in November

Consumer inflation eased in China in November, according to figures released on Friday.

The consumer price index rose 1.6% from a year earlier, down from 2.1% in October and in line with expectations. The key driver for the reduction was lower food prices, while fuel price inflation also eased further.

Meanwhile, the producer price index fell 1.3% in November versus a year earlier, unchanged from October and versus expectations for a 1.5% decline.

Julian Evans-Pritchard, senior China economist at Capital Economics, said: "Consumer price inflation dropped to its lowest in eight months in November and producer price inflation stayed at a 23-month low.

"The shift away from zero-Covid could put some upward pressure on prices going forward. But China seems unlikely to experience the surge in inflation seen in other countries when they opened up and we doubt inflation will become a major policy constraint."