China’s Consumer Inflation Rebounds to Highest Level Since March

China’s consumer inflation strengthened in November, with official data released on Wednesday showing the Consumer Price Index rising 0.7 percent year on year. The figure marks the highest level recorded since March and represents a noticeable improvement from October, when prices grew at a slower pace. The National Bureau of Statistics said the increase reflects changing conditions in both food and non food categories as demand continues to show signs of recovery.

According to the bureau, the main driver behind the higher reading was a shift in food prices. After months of declines, food costs edged upward in November, contributing significantly to the overall rise in consumer inflation. Analysts noted that certain fresh food categories experienced firmer prices due to seasonal changes and weather related effects, while pork and vegetable prices also offered mild support.

Core CPI, which removes the more volatile food and energy components, rose 1.2 percent compared with a year earlier. This marks the third month in a row that core inflation has stayed above 1 percent, a trend that officials say points to improving momentum in domestic consumption. The steady increase in core prices is often interpreted by economists as an encouraging signal that household demand is gradually stabilizing after a prolonged period of muted spending.

While the year on year data showed improvement, price movements on a monthly basis told a different story. The CPI slipped 0.1 percent from October, a decline that the National Bureau of Statistics linked mainly to seasonal adjustments in service prices. Following the busy autumn travel season, costs for tourism related services typically ease, and this year followed that pattern. Transportation, hospitality and cultural activities all recorded modest price drops, weighing on the monthly index.

Despite the slight month on month dip, economists say November’s inflation data suggests that consumer prices are normalizing after a long stretch of subdued readings. Rising core inflation and stabilizing food prices indicate that confidence is slowly returning to the market, even as broader economic pressures persist. The latest figures also come at a time when policymakers are emphasizing the need to strengthen demand and support household spending to drive recovery.

November’s numbers add to a series of positive signals observed in recent months, including improvement in industrial activity and early signs of momentum in retail spending. Analysts expect inflation to remain moderate through the first quarter of next year, with food prices likely to stay steady and service consumption continuing to adjust to seasonal trends.

As China heads into the winter period, attention will turn to how changing weather conditions, holiday spending patterns and policy measures influence price levels. For now, the rebound in November’s CPI is seen as a reflection of improving domestic conditions and the gradual normalization of market demand.