China’s factory-gate inflation eased slightly in November, after a government crackdown on surging commodity prices and an easing power shortage. CSI 300 up +1.66%, CNY USD down -0.27%
- The producer price index surged 12.9% in November, slower than October’s record-high of 13.5% but faster than the analysts’ estimate of 12.4%.
- Even though factory inflation remains extremely high, moderating prices might give policymakers an opportunity to inject more stimulus to fix wobbling growth.
- China’s economy has lost some steam in recent months as it struggles with rising prices, a slowing manufacturing sector, debt crisis in the property market, and regular COVID-19 outbreaks.
- Julian Evans-Pritchard, senior China economist at Capital Economics stated that prices pressures are generally easing, more so in heavy industry.
- Factory-gate inflation has surged since May this year due to rising commodity prices, increasing pressures on retail businesses to pass their costs to consumers.
- China faces various problems heading into 2022, including the collapse of its property sector.
And here is a golden tip
Want to profit from forex news? These forex robots earned the best historical yields to investors. Check out Best Forex Robots