Consumer prices in China fall for first time in 11 years
Mainland China in November recorded its first consumer deflation since 2009, an outcome that an analyst suggested would be short-lived.
The country’s consumer price index last month fell 0.5% from a year ago, according to official statistics. Food prices in general declined 2%, with pork prices down 12.5% and those of eggs, chicken and duck respectively falling 19.1%, 17.8% and 10.8%.
Consumer prices in villages are declining at a greater pace than cities, the numbers suggest.
Hong Kong-based economist Andy Kwan said the trend was unlikely to last. The decrease in pork prices should be seen in light of a sharp rise last year driven by problems in containing an outbreak of African swine fever.
More frozen pork supplies had been introduced to cool the market, resulting in this year’s decline, Kwan said.
Exports in the country were performing well and the domestic market was also picking up momentum, he said, predicting that China’s economy was on course for a nearly full recovery by the second quarter next year.
Meanwhile, the fall in China’s producer price index has slowed. The index fell 1.5% in November compared with last year, but it was up 0.5% from last month.
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