China's factory-gate inflation eased
China's factory-gate inflation slightly eased in November. Back in October, China's PPI, which reflects the prices factories charge wholesalers for their products, skyrocketed by 13.5% y/y, hitting a 26-year high. The government has intervened to cool down the surging coal and metals prices and those policys are working.
In November, PPI increased by 12.9% y/y, 0.6 pp lower than the growth rate in the previous month. The gap between the rise of producer goods prices and consumer goods prices narrowed in November. In November, PPI for producer goods eased to 17% y/y from 17.9% y/y in October while PPI for consumer goods grew by 1% y/y, accelerating from the 0.6% y/y in October.
Further data and analysis on China's economy are available on the CEIC China Economy in a Snapshot – Q4 2021 report.