China inflation data recap - pork prices up 110% y/y

Surging food prices were the main driver of the CPI gain in nove. November. Post is here with the data:

• China inflation data y/y for November. CPI 4.5% (expected 4.3%) PPI -1.4 % (expected -1.5%)

The CPI rose at its fastest pace seen since January 2012. Core inflation (excludes food and energy prices) only rose modestly (+1.4% y/y)

Meanwhile the PPI came in at its fifth consecutive monthly fall. The falling PPI detracts from business profitability, which in turn weighs on business spending (capex). The biggest fall in prices here was in oil and gas extraction, chemical fiber manufacturing sectors.