China November pricing data
- First decline since 2009
- Prior was +0.5% y/y
- PPI -1.5% vs -1.8% y/y expected
- Prior PPI was -2.1% y/y
This is a surprise development and it's concerning for the reflation consensus theme for 2021. China has avoided the brunt of the pandemic but retail spending has been soft and now prices are negative y/y. Naturally some of that is the international knock-on but this is something to think about as the year winds down.
Update: Looking through the details, a 2% drop in food prices driven by pork was a major factor in the drop but even without food, prices were still down 0.1% y/y.
