China’s consumer price index (CPI) grew 2.3 percent year-on-year in November, up from 1.5 percent in October, amid rising prices for vegetables, oil and diesel, according to the National Bureau of Statistics. Meanwhile, China’s producer price index (PPI), which measures factory gate prices, rose by 12.9 percent year-on-year in November. The bulk commodity price rise has elevated the raw input price which resulted in the surging momentum of the food industry. Chinese food giants have announced an increase in retail prices as rising production costs and a higher PPI erode profit margins. The uptick in consumer inflation is expected to continue in 2022 due to the food price spike, a pickup in domestic consumption and a continuity of higher commodity prices into downstream consumer goods.
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