Chinese consumer prices fell the fastest in three years in November, with the Consumer Price Index (CPI) falling 0.5% from October and a year earlier.

This is the most significant year-over-year CPI fall since November 2020.

The weak domestic demand casts doubt on the economic recovery, and recent mixed trade data and factory surveys have fueled requests for further governmental support to boost growth.

The weak core CPI data indicates chronically low demand, which China should address to achieve more sustainable and balanced growth.

The economy faces rising local government debt, a weak housing market, and weak domestic and international demand.

Moody’s downgraded China’s credit rating, but the finance ministry said the economy would recover and risks were manageable.