China’s annual inflation fell to 1.6% year-on-year in November 2022 from 2.1% in the prior month.
This was the lowest figure since March, mainly due to a sharp slowdown in cost of food (3.7% vs 7.0% in October) as pork prices eased further after authorities released national reserves into the market.
Meantime non-food inflation was unchanged (at 1.1%), with prices continuing to rise for transport & communication (2.9% vs 3.1%) health (0.5% vs 0.5%), clothing (0.5% vs 0.5%), and education, culture (1.3% vs 1.2%); while cost of housing fell further (-0.2% vs -0.2%).
China has set a target of CPI at around 3% for 2022, the same as in 2021.
Core consumer prices, excluding the volatile prices of food and energy, rose 0.6%, the same pace as in the prior two months. On a monthly basis, consumer prices declined by 0.2% in November, the first drop since August, and after a 0.1% gain in October.
China has been relatively unaffected by a global surge in food prices since Russia’s invasion of Ukraine in February.