China's producer prices decline, while consumer inflation slows due to weak demand.

In November, China's factory-gate prices fell annually for the second consecutive month, while consumer inflation slowed, reflecting lackluster activity and soft demand in an economy hampered by strict economic controls.

Analysts anticipated that the government will maintain low interest rates and implement confidence-building measures.

According to data released by the National Bureau of Statistics (NBS) on Friday, the producer pricing index (PPI) was down 1.3% on a year-over-year basis, unchanged from October's yearly decline. This was less than the 1.4% decline predicted by a Reuters poll.

The consumer price index (CPI) grew at its slowest rate in eight months in November, up 1.6% from a year earlier, which was smaller than the 2.1% annual increase observed in October but in line with a Reuters poll.

According to Zhiwei Zhang, chief economist of Pinpoint Asset Management, "these figures show the economic momentum continues to decline."

Tuesday's high-level political conference, a convening of the ruling Communist Party's Politburo, emphasized that in 2023 the government will prioritize stabilizing growth, boosting domestic demand, and opening the country to the outside world.

Zhang stated that the government would take additional efforts to stimulate the economy, despite easing pandemic curbs over the last week.

"The Politburo meeting... highlighted low confidence as a significant economic issue," he stated. The rapid speed of reopening demonstrates the administration's sense of urgency; I anticipate the government to do more to bolster market and household confidence.

This year, growth in the world's second-largest economy has slowed, primarily due to the inflexible COVID-19 restrictions, while global demand has also weakened.

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