China's consumer inflation shrank more than expected in November as recent stimulus measures did little to offset a stubborn deflationary trend, while producer inflation also contracted.

Consumer price index inflation fell 0.6% month-on-month in November, government data showed on Monday. That was lower than expectations for a 0.4% decline and worse than the 0.3% contraction seen in the previous month.

CPI grew 0.2% year-on-year, lower than expectations for a 0.5% gain and weaker than the 0.3% growth seen in the previous month.

The figures suggest that while some aspects of China's economy have picked up amid aggressive stimulus measures from Beijing, consumer spending remains fragile. That lends more credibility to growing investor calls for more targeted fiscal measures aimed at supporting private consumption.

But the low producer price index data suggests factory-gate inflation also remained subdued, despite a slight pick-up in business activity through November. PPI inflation fell 2.5% in November, slightly better than the 2.8% decline expected and improving from the 2.9% seen in October.

However, the reading marked the first consistent decline in PPI inflation in more than two years, as China's factories struggle with sluggish local demand.

The focus now turns to two key political meetings in China in December, which are expected to provide more information on the economic outlook and Beijing's stimulus plans.

Source: Investing.com