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Inflation in China fell below 2% in November

  • By Al Mayadeen English
  • Source: Agencies
  • 9 Dec 2022 08:57
2 Min Read

With loosening restrictions, inflation in China has slowed down.

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  • Inflation in China fell below 2% in November
    Inflation in China has slowed down. 

China's consumer inflation slowed down in the month of November, falling below 2% for the first time since March, according to official data on Friday. This paved the way for authorities to reveal fresh measures to replenish the economy, which has been experiencing setbacks since the start of the pandemic. 

This comes despite that last month, Chinese authorities implemented lockdowns in cities where the virus was resurging, affecting businesses and supply chains.

The consumer price index (CPI) rose 1.6% year-on-year last month, down 2.1% in October, according to the National Bureau of Statistics (NBS). 

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In November, food prices in China rose 3.7% year-on-year - interestingly, the price of pork rose by 34.4%, while the cost of fresh vegetables decreased by 21.1%

China has been relatively unaffected by a global surge in food prices since the start of the war in Ukraine. However, pork, as a widely consumed food in China, is being closely monitored by Chinese authorities to avoid popular discontent. 

"In November, due to the domestic epidemic, seasonal factors, and a higher base of comparison in the same period last year, CPI turned from rising to falling month-on-month and fell back year-on-year," said Dong Lijuan, a statistician at the BNS. 

Although COVID-19 restrictions were loosened up, traveling between provinces remains complicated as COVID-19 policies differ from place to place. 

"I expect the government will do more to boost market and household confidence. The fast pace of reopening indicates the government’s sense of urgency," said Zhang Zhiwei of Pinpoint Asset Management, speaking to Bloomberg News.

  • inflation
  • China

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