Data released by China’s National Bureau of Statistics on Wednesday, December 10, showed that the annual Consumer Price Index (CPI), a key measure of inflation, rose to 0.7% year-on-year in November, following a 0.2% increase in October. This figure matched market expectations and marked the highest reading since February of last year. Food prices led the way, rising 0.5% month-on-month and 0.2% year-on-year.

Meanwhile, the core CPI, which excludes volatile food and energy prices, remained unchanged at 1.2%, the same as in October, after six consecutive months of increases. Transportation costs fell by 2.3%.

Separately, China’s Producer Price Index (PPI) remained in negative territory for the 38th consecutive month, rising to -2.2% year-on-year in November, compared to a 2.1% decline in October. This figure was higher than the expected 2% drop.