China's Inflation Accelerates Again, But Monthly Prices Are Falling?
China recorded a 0.7% year-on-year increase in consumer prices (CPI) in November 2025. This figure was in line with market expectations and higher than the 0.2% increase in October. This also marked the second consecutive month of positive inflation and the fastest pace of increase since February 2024, indicating that price pressures are starting to be felt again at the consumer level.
Interestingly, on a month-on-month (m/m) basis, consumer prices actually fell 0.1% in November. This result contrasted market expectations of a 0.2% increase, reversing October's increase. This decline was also the first in five months, signaling that domestic demand is not yet truly strong.
The combination of strengthening annual inflation but weakening monthly inflation suggests a rather mixed situation. On the one hand, the medium-term trend is beginning to reverse from the risk of deflation to more normal inflation. On the other hand, the weakening monthly prices suggest that household consumption and spending activity remain unstable.
For market participants and policymakers, this data will be an important consideration. If annual inflation continues to rise but demand remains sluggish, the Chinese central bank and government may maintain or increase targeted stimulus to boost growth, while remaining vigilant to prevent price increases from accelerating too rapidly. (asd)
Source: Newsmaker.id
