China’s consumer inflation turns negative for the first time in over 10 years

In November, China’s Consumer Price Index (CPI) declined by 0.5% y/y, entering negative territory for the first time in more than a decade. Compared to same month last year, food prices decreased by 2%, while non-food prices saw a marginal decrease by 0.1% y/y.

The sharp decline in pork prices led to lower food prices in general and was the main driver for the decrease in CPI. In Q4 2019, pork prices in China skyrocketed due to a shortage of supply caused by the African swine fever outbreak.
 

Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q4 2020 report.