Factory prices rose at the slowest pace in over two years in November, according to official data, adding to existing pressure on the Chinese government to implement measures to galvanize domestic demand.
China’s producer price index (PPI) grew 2.7% year-on-year last month, slowing from 3.3% in October, said the National Bureau of Statistics.
On a monthly basis, prices fell 0.2%, down from a 0.4% gain the month before.Industrial goods and services have been hit by weaker capital investment in recent months following the government’s efforts to restrict risky borrowing and surging corporate debt levels.
Raw materials prices rose 4.6% last month from a year earlier, down from a 6.7% increase in October.The consumer price index (CPI) slowed to a 2.2% rise from 2.5% in October, falling below market expectations of 2.4%, per a Reuters poll taken last month. Notably, the food price index slowed following a spike in recent months.