China consumer prices rise in November, slightly above market expectations

Consumer prices in China rose during the month of November, remaining slightly above what markets had initially anticipated. However, the figure remained below the upper limit of the government’s target range.

China’s consumer price index (CPI) advanced 2.3 percent from a year ago, after climbing 2.1 percent in October, data released by the National Bureau of Statistics showed Friday. A median estimate of economists called for a 2.2 percent year-over-year gain.

Compared to October, consumer prices rose 0.1 percent, matching forecasts. That followed a 0.1 percent decline the previous month, the data showed.

Separately, the producer price index (PPI) soared 3.3 percent in the 12 months through November, well above forecasts calling for 2.2 percent. Producer inflation has now risen in each of the last three months after nearly five years of decline.

However, Beijing’s terms of trade improved in November, once again pointing to an industrial recovery. November imports expanded at the fastest pace in more than two years on strong commodity demand, especially for coal and iron ore.

Further, the Chinese economy is expected to benefit from the U.S. President-elect Trump’s victory in wake of the protectionist policies likely to be implemented by him.

Meanwhile, the USD/CNY traded at 6.89, up 0.28 percent.