China’s consumer inflation hit a five-month low in November, rising just 0.2% YoY and missing expectations, signaling weak domestic demand despite Beijing’s stimulus measures. Core inflation edged up slightly to 0.3%, while wholesale prices remained deflationary, with the producer price index falling 2.5% for the 26th consecutive month. Analysts attribute the deflationary pressure to a supply-demand mismatch and lingering trade tensions, with forecasts suggesting negative PPI inflation may persist through 2025. Although China reported strong retail sales growth and expanding manufacturing activity in recent months, Fitch Ratings revised its GDP growth forecast for 2025 to 4.3%, citing risks from the real estate market and US trade policy.