Customers select vegetables at a market in Wuhan, central China's Hubei Province, Dec. 10, 2025. [Photo/Xinhua]

China's consumer inflation accelerated at its fastest pace in 21 months in November, while factory-gate prices showed signs of stabilizing, underscoring that a recovery in domestic demand is gaining traction amid government support measures.

The consumer price index (CPI), a main gauge of inflation, climbed 0.7 percent year on year in November, quickening from October's rise of 0.2 percent and marking the fastest pace of growth since March 2024, according to the National Bureau of Statistics (NBS).

NBS statistician Dong Lijuan attributed the pick-up in CPI growth to rising food prices, which rebounded 0.2 percent in November, compared with a fall of 2.9 percent in October.

Prices of fresh vegetables surged 14.5 percent year on year last month, ending a nine-month declining streak. Energy prices slid 3.4 percent from a year earlier, a sharper drop than the previous month, according to the NBS.

The country's policies to boost domestic consumption continued to bolster demand, with prices of home appliances and clothing up 4.9 percent and 2 percent year on year, respectively.

The core CPI, which excludes food and energy prices, increased by 1.2 percent year on year in November, unchanged from the rise in the previous month.

On a monthly basis, the CPI dipped 0.1 percent in November, as prices for hotels, flights and travel agencies cooled after the extended holiday period in October, according to Dong.

The average CPI for the first 11 months of this year remained flat compared with the same period of last year.

Wednesday's data also revealed that the producer price index (PPI), which measures costs for goods at the factory gate, fell 2.2 percent year on year in November. The decline slightly widened from October's 2.1-percent fall, largely because of a higher comparative basis last year.

However, signs of stabilization emerged on a monthly basis. The PPI edged up 0.1 percent from the previous month in November, marking a second straight month of gains as effects of the country's macro policies continued to filter through to the industrial sector.

Dong attributed the improvements in specific industries to the government's efforts to manage production capacity and curb disorderly competition, noting that price declines further narrowed in the coal mining, solar equipment and lithium-ion battery sectors, among others.

The Chinese authorities noted this week that the country is on track to achieve its main goals for this year's economic and social development.

China had targeted GDP growth of around 5 percent for 2025, and its economy expanded 5.2 percent year on year in the first three quarters.

During a meeting of the Political Bureau of the Communist Party of China Central Committee held on Monday, attendees agreed that for 2026, China must implement more proactive and effective macro policies, and make policies more forward-looking, targeted and synergistic. It is also imperative to continuously expand domestic demand and improve supply.

Looking ahead to 2026, Wen Bin, chief economist at China Minsheng Bank, said that with policies to expand domestic demand and other measures further taking effect, the country is expected to see mild price recovery next year.