China’s consumer inflation entered negative territory in November for this first time since October 2009, official data showed on Wednesday, reported the South China Morning Post.
China’s official consumer price index fell to minus 0.5% in November from a year earlier from 0.5% growth in October, according to the National Bureau of Statistics. This was the lowest since it also reached minus 0.5% in October 2009.
The fall was led by a 2.2% decline in the price of food, which included the price of pork falling by 12.5%. The price of eggs also fell 17.1%.
“Headline consumer price inflation turned negative for the first time since October 2009 last month,” said Julian Evans-Pritchard, senior China economist at Capital Economics. “But this was almost entirely driven by improvements in pork supply and isn’t evidence of faltering demand. To the contrary, broader price pressures are starting to pick up on the back of the improvement in economic activity.”