China corporate goods prices plummet in November

A measure of Chinese wholesale prices fell sharply in November, offering the latest evidence that the world's fourth-largest economy could be getting closer to deflation.

The corporate goods price index (CGPI) fell 0.4 percent in November from a year earlier, down sharply from October's 4.0 percent rise, the People's Bank (nasdaq: PBCT - news - people ) of China said on Monday.

It was the first time since December 2002 that the index has fallen from its year-ago level.

The central bank said the index, which measures the prices paid by businesses for inputs ranging from coal to grains, fell 3.0 percent in November from October. The month-on-month figure is not seasonally adjusted.

Iron ore prices were down 8.8 percent from a year earlier, while steel product prices fell 9.9 percent and non-ferrous metal product prices fell 32.0 percent.

The fall reflects downward pressure from the global fall in commodity prices, which is also apparent in the producer price index (PPI) in China and elsewhere, said David Cohen with Action Economics in Singapore.