China CPI Rises 0.7% in November, Highest in 32 Months

China's consumer price index (CPI) rose for the second consecutive month in November, posting its highest reading in 32 months amid persistent deflation concerns in the world's second-largest economy.

China's CPI increased 0.7% year-on-year in November, according to data released by the National Bureau of Statistics on Tuesday. The figure matched market expectations and marked the highest level since March 2023, when CPI rose 1.0%.

The CPI had fallen into negative territory in August (-0.4%) and September (-0.3%) before turning positive in October, helped by spending during the National Day holiday, China's longest public holiday. November's reading extended the upward trend for a second straight month.

However, the producer price index (PPI) fell 2.2% year-on-year in November, in line with market forecasts of a 2.1% decline. China's PPI has remained in negative territory for 38 consecutive months since October 2022.

The data comes as China grapples with deflationary pressures—falling prices amid an economic slowdown—raising questions about whether the country can emerge from its prolonged period of low inflation.