China Consumer Inflation Hits 15 month High With a Jump in Food Prices

Inflation in China rose to 2.3% in November 2021, the highest figure since August 2020 from 1.5% a month earlier. Market consensus was 2.5%. Food prices and a further rise in cost of non-food items both rose. The cost of food increased for the first time in six months.

Chinese Vegetables
Chinese Vegetable Prices rising

China inflation November 2021

Consumer price index

  • CPI 2.3% y/y, vs expected 2.5% y/y, prior 1.5%
  • CPI 0.4% m/m, vs expected 0.4% y/y, prior 0.7%
  • Highest since August 2020, boosted by a rebound in food prices and a further rise in cost of non-food.
  • Cost of food increased for the first time in six months (1.6% vs -2.4% in October), with a jump in prices of both fresh vegetables and fresh fruit and a slower fall in pork prices. 
  • Non-food inflation rose up (2.5% vs 2.4% in October), with cost rising further for all components:
  • Transportation & communication (7.6% vs 7.0%),
  • Fuel & utilities (1.7% vs 1.7%),
  • Household goods and services (0.5% vs 1.5%),
  • Health (0.6% vs 0.6%), clothing ( 0.5% vs 0.5%),
  • Education, culture (3.0% vs 2.9). B
  • Beijing has set a 2021 CPI target of around 3%, compared with 3.5% last year.

China Inflation Rate
China Inflation Rate

Source: National Bureau of Statistics

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