China Producer Prices Change

China's producer prices dropped by 2.5% year-on-year in November 2024, softer than a 2.9% decline in the previous month and less than market expectations of a 2.8% fall. This marked the 26th consecutive month of producer deflation, but the softest figure since August amid ongoing measures from Beijing to reverse weak demand as the year-end approaches. The cost of production materials shrank at a slower pace (-2.9% -3.3% in October), with further declines in mining (-4.9% vs -5.1%), raw materials (-2.9% vs -4.0%), and processing (-2.7% vs -2.9%). Also, a decline in consumer goods softened slightly (-1.4% vs -1.6%), due to more drops in food (-1.5% vs -1.6%), clothing (-0.3% vs -0.4%), and durable goods (-2.7% vs -3.1%), while daily-use goods prices edged higher (0.2% vs 0.1%). On a monthly basis, producer prices edged up 0.1%, marking the first increase in six months and reversing a 0.1% decline in October. For the first eleven months of the year, factory-gate prices dipped 2.1%.