China’s consumer price inflation seems to have accelerated for third straight month in November

China is expected to be recording rising inflationary pressure. According to a Societe Generale research report, the consumer price inflation is likely to have accelerated for the third straight month to 2.3 percent year-on-year in November. The rise is expected to have been underpinned by stronger food CPI inflation and a fractional rise in housing CPI inflation.

In the future, the Chinese consumer price inflation is expected to witness an upwards trend, increasing further throughout the first half of 2017. On the producer front, the input price index in the official PMI rose solidly by another 5.7 to 68.3 in November, owing to continuing rises in commodity prices. This indicates towards additional gains in PPI inflation, where a sequential strengthening from 0.7 percent month-on-month to 1 percent month-on-month in November is expected, stated Societe Generale.

On a year-on-year basis, the pace of inflation is expected to rise from 1.2 percent to 2.7 percent. Reflationary pressure rising which would possibly be another restraint on the Chinese central bank in terms of carrying out headline easing in the first half of 2017, added Societe Generale.