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Inflation slows in China
December 9, 2013, 9:50 am


Food prices rose 5.9 per cent from a year ago in November [Xinhua]

China’s annual consumer inflation slowed to three per cent in November from an eight-month high of 3.2 per cent, China’s National Bureau of Statistics (NBS) said on Monday.

Inflation rose three per cent in cities, and 3.1 per cent in rural areas. Food prices rose 5.9 per cent from a year ago, while prices of non-food products edged up 1.6 per cent.

New data on exports, factory and services sectors showed encouraging signs for the world’s second largest economy.

Prices of grain, beef, mutton, milk and fruit rose month-on-month, but prices of pork, fresh vegetables, eggs and aquatic products were down from the previous month.

Food prices dropped 0.2 per cent from October. Prices of non-food products remained flat against the previous month.

In the first 11 months of this year, China’s consumer price index (CPI) rose 2.6 per cent year-on-year, well below the government’s full-year target of 3.5 per cent.

The moderation in year-on-year CPI inflation in November was due to lower food inflation, according to a research note by Zhi Xiaojia and Lu Ting, China economists with Bank of America Merrill Lynch.

Source: Agencies