China's factory gate inflation increased to a more than five-year high in November on higher commodity prices and consumer price inflation exceeded expectations due to rising food costs.
Producer price inflation accelerated notably to 3.3 percent in November from 1.2 percent in the previous month, the National Bureau of Statistics showed Friday. Inflation was expected to rise to 2.3 percent.
Producer price inflation had turned positive for the first time in more than four years in September.
Consumer price inflation rose to 2.3 percent in November from 2.1 percent in October. A similar high rate was last seen in April. The pace also exceeded the expected 2.2 percent.
Nonetheless, the figure continues to remain below the government's full-year target of 3 percent.
Month-on-month, producer prices gained 1.5 percent and consumer prices edged up 0.1 percent.
Food inflation climbed to 4 percent from 3.7 percent on higher pork prices. Non-food inflation edged up to 1.8 percent from 1.7 percent.
The big picture is that China's stimulus driven recovery has stoked domestic price pressure this year, Julian Evans-Pritchard, a China economist at Capital Economics, said.
Looking ahead, the economist said this reflation may begin to run out of steam next year as China's economy starts to slow again. Producer price inflation is expected to peak around 5 percent during the first half of next year, before beginning to edge down again.
by RTT Staff Writer
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