Chinese Consumer Prices Rise 3%

Chinese consumer prices were up 3% in November, modestly below expectations for a 3.1% rise.

Meanwhile, producer prices fell 1.4%, missing expectations for a 1.5% fall.

“CPI inflation could be quite close to 3.5% for the rest of 2013, triggering market concerns about policy tightening,” wrote Bank of America’s Ting Lu in December 1 note. “With weakened commodity prices and the 2.0% MoM drop in domestic fuel prices, PPI inflation could be -0.1% MoM and -1.5% YoY in November.”

Here’s a look at the trajectory of Chinese consumer and producer prices:

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