China’s consumer price index (CPI) rose 1.5% year-on-year in November, slightly up from 1.3% in October as food inflation accelerated.
Producer price index (PPI) declined 5.9% year-on-year in November, flat from the previously month, reflecting weak domestic demand and lower commodity prices.
In the first eleven months of 2015, China’s CPI inflation remained subdued at an average rate of 1.4% year-on-year, while PPI declined 5.1% over the same period.
"On the back of overcapacity, falling commodity and energy prices, and weak domestic demand, China’s inflation will unlikely pick up significantly in the near future," says a research report by ANZ.
"With today’s data, the full year CPI will likely remain below 1.5%, much lower than the government’s target of 3% for 2015. More alarmingly, the GDP deflator, a broader measure of price changes in the economy, declined 0.7% in the third quarter, indicating that China has entered a deflationary era," the report adds.