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China's CPI accelerates to 8-year high, yet PPI drops

China's CPI accelerates to 8-year high but PPI drops

China’s inflation, measured by the consumer price index, accelerated to a nearly eight-year high last month due to a jump in the cost of some food ingredients.

Data released by China's National Bureau of Statistics (NBS) on Tuesday revealed that the consumer price index (CPI) rose 4.5 percent in November, compared to the same period last year.

The CPI in the world's second largest economy was estimated to be 4.5 percent last month, where it registered the highest since January 2012 on the monthly basis.

The food cost index rose 19.1 percent last month year, the fastest increase in more than 11 years and 15.5 percent in October.

On the other hand, China's producer price index fell 1.4 percent in November on an annual basis, marking the fifth consecutive monthly decline. This compares with a 1.6 percent year-on-year decline in October and expectations of a 1.5 percent decline.

The divergence between the two inflation gauges continued to reflect the problems of the industrial sector on the back of the trade war with the United States.

Meanwhile, the Chinese currency fell against the U.S dollar by 0.02 percent at 7.0400, while the offshore Yuan also traded lower at 7.0383 per dollar.

The dollar index traded lower for a second straight session at 97.48, compared to the session’s open at 97.60.

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