China MarketThe Chinese inflation slowed in November, which is another fact adding concerns for cooling in activity in the second largest economy in the world. The consumer price index increased by 1.4% on an annual basis with the slowest pace since November 2009. The figure is below the forecast of analysts for growth of 1.6% and the report 1.6% in October. On a monthly basis, the CPI fell by 0.2%. The experts predict that in November inflation will remain unchanged in October index also did not move.

    The data justify the expectation of any delay. A few years ago everyone was talking about how China needs to re-balance its economy. And this is exactly what happens now. It will lead to slow growth, but, hopefully, to a qualitative growth. What we see now is not alarming. According to analysts the fears of deflation are overpriced. The slower growth in inflation is due to falling commodity prices globally, and this should have a positive impact on businesses and households.

    The index of producer prices decreased for 33 consecutive month in November. The index is down with 2.7% yoy against forecasts for a decline of 2.4% and -2.2% recorded in October. Moreover the exports rose only by 4.7% yoy in November compared to 11.7% in October.