BEIJING, China – China’s consumer inflation rebounded in November after vegetable prices jumped due to unusually frigid winter.
Prices rose 1.5 per cent over a year earlier, accelerating from October’s 1.3 per cent, data showed Wednesday. That was driven by a 9.4 per cent rise in prices of fresh vegetables.
Consumer inflation had been drifting down after hitting 2 per cent in August. Relatively low inflation has given Chinese leaders room to cut interest rates six times since last November to stimulate the slowing economy.
“Today’s inflation data support our view that domestic price pressures are on the rise,” said Julian Evans-Pritchard of Capital Economics in a report. “Looking ahead, we expect inflation to rise going into 2016.”
Also in November, wholesale prices measured as goods left the factory fell for a 44th straight month, declining by 5.9 per cent from a year earlier.
Inflation in non-food consumer prices edged up to 1.1 per cent from October’s 0.9 per cent.