Economists at TD Securities said they expect the Consumer Price Index in China to decline to 1.5% on a yearly basis in November from 2.1%.

November PPI to remain in deflationary territory

"Pork prices fell in November after several months of gains, contributing to a likely overall drop in food prices, while a higher base is also likely to result in a lower year-on-year CPI reading. Fuel prices have also added upward pressure on inflation over past months, but we expect this to have moderated in November too."

"Taken together, with weak demand side pressures, it all points to a subdued CPI outcome. Separately, we expect November PPI to remain in deflationary territory, with a print of -1.2% y/y likely (cons. -1.4%, last -1.3%)."

"While industrial metals and bulks recovered some ground over the month this was mitigated by a fall in oil prices. Additionally, despite rising Covid cases, there appears to be little sign of any build-up of supply constraints and any feed through into producer prices at present, with PMI input prices falling further."