Inflation in China fell to a five-month low in November as the economy in the nation of 1.4 billion people continues to slow.
Inflation in China rose 0.2% in November from a year ago, according to the National Bureau of Statistics. Economists had expected inflation to rise 0.5% year-over-year in November.
Core inflation, which excludes volatile food and energy prices, rose 0.3% in November from 0.2% in October.
At the same time, China’s producer price index, or wholesale inflation, declined for the 26th consecutive month, falling by 2.5% in November.
Prices for ferrous metal materials led declines with a drop of 7.1%, while fuel and power prices decreased by 6.5%.
The decline in inflation comes as China’s economy continues to slump coming out of the Covid-19 pandemic.
Yest despite the poor economic situation, Chinese stocks are up 3% after government officials in Beijing said they plan to introduce more economic stimulus measures to boost growth.
Hong Kong’s benchmark Hang Seng index climbed 3% higher on Dec. 9 after China promised more proactive fiscal measures and looser monetary policy to boost domestic consumption.
China’s economy has struggled with a sharp slowdown in domestic consumer spending and consumption in recent years.
China remains the world’s second-largest economy after the U.S.
