China's Deflation Deepens as Consumer and Producer Prices Fall

Economic recovery remains uncertain amid weak domestic demand and multiple headwinds.

China's consumer price index (CPI) dropped 0.5% in November both from a year earlier and compared with October, marking the steepest fall in three years.
The producer price index (PPI) fell 3.0% year-on-year, marking a 14th straight month of decline.
Weak domestic demand is cited as a key factor behind the deflationary pressures, along with falling global energy prices and a chronic supply glut.
China's economy has been grappling with multiple challenges including mounting local government debt, an ailing housing market and tepid demand at home and abroad.
Markets are awaiting more government stimulus at the annual agenda-setting Central Economic Work Conference due to be held around mid-December.