December 10, 2008

China November PPI down sharply

China reported Wednesday its producer price index fell sharply in November, slowing to an annual rate of 2 percent, compared to 6.6 percent in October.

The wholesale price inflation rate, announced by the National Bureau of Statistics, has been falling from August's 12-year high of 10.1 percent, Xinhua reported.

China's November consumer price index, the main measure of inflation, will be released Thursday, and the steep fall in the PPI is expected to have an impact on the CPI.

China has announced a two-year, $586 billion economic stimulus package as it faces major economic challenges, including declining demands for its exports and falling growth rate.