China Economy

China sinks into COVID shock

David Llewellyn-Smith
Monday, 12 December 2022
Advertisement

Pantheon kicks us off with more weak Chinese inflation:

  • China: CPI rose 1.6% y/y in November, unchanged from October. Consensus was 2.1%.
  • China: PPI declined 1.3% y/y in November, unchanged from October. Consensus was -1.5%.

The impact of the new Covid wave in depressing consumption activity was evident in the inflation data. The CPI was steady at 1.6% y/y, below expectations for a 2.1% rise. The tourism sector has borne the brunt of pandemic measures for obvious reasons. Air ticket prices fell 7.5% and hotel room prices dropped 2.5%.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
Twitter Share
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.