China's consumer inflation accelerated to a 0.7% year-on-year increase in November 2025, marking the fastest pace since March 2024 according to data released Wednesday by the National Bureau of Statistics (NBS). The figure represents a significant 0.5 percentage point jump from October's growth rate, signaling shifting economic dynamics as 2025 draws to a close.
Food prices emerged as the primary driver of inflation, reversing previous months' declines to post notable gains. Core CPI – excluding volatile food and energy categories – maintained steady growth at 1.2%, remaining above 1% for three consecutive months. NBS analysts highlighted this sustained core inflation as evidence of "gradually strengthening domestic demand" in the world's second-largest economy.
While the annual comparison shows upward momentum, November's month-on-month CPI dipped 0.1%, attributed to seasonal declines in service sector prices following the autumn travel peak. This mixed picture presents both challenges and opportunities for policymakers balancing economic recovery with price stability.
The latest figures arrive as global markets closely monitor China's economic indicators, with particular attention to consumption patterns ahead of the Lunar New Year period in early 2026. Business leaders and investors will be watching for potential policy adjustments in response to these inflationary trends.
