Tighter government control triggered a slowdown in Chinese producer prices as they went up by an annual rate of 12.9 percent in November, easing from the previous month’s 26-year high of 13.5 percent, official data showed.
The loss of steam reflects the efficacy of the government’s policies of controlling commodity prices and supply shortfalls in the previous period.
The world's second-largest economy has tried to adopt policies of supply and price stabilization to curb the rise in prices.
This would improve policymakers’ ability to boost the economy, Bloomberg reported.
On a monthly basis, producer prices didn’t experience any change in November compared to a 2.5 percent increase a month earlier.
Meanwhile, consumer prices went up by a yearly rate of 2.3 percent, up by 0.8 percent from a month earlier, to hit its highest level since August 2020.
The inflationary pressures were attributable to last year’s low base effects.
The jump in consumer prices was mainly driven by increasing food prices, which went up by 1.6 percent, accelerating from the previous month’s drop.
In particular, fresh vegetables prices surged by 30.6 percent while that of pork slumped by 32.7 percent.
In addition, annual core inflation rate, which excludes changes in volatile items such as food and energy, hit 1.2 percent in November dropping by 0.1 percent from October’s level.