China's factory inflation slowed in November, a sign demand remains weak amid Beijing's ongoing trade war with the United States, while consumer inflation also flagged, official data showed Sunday.

The producer price index -- an important barometer of the industrial sector that measures the cost of goods at the factory gate -- climbed 2.7% on-year in November.

It ticked down from 3.3% the previous month, recording its weakest growth since October 2016, while remaining in line with the forecast in a Bloomberg News survey.

A slowdown in factory gate inflation reflects sluggish demand.

The consumer price index (CPI) -- a key measure of retail inflation -- rose 2.2% on-year, compared with 2.5% in October.

Food prices, up 2.5%, rose quicker than non-food prices, which were up 2.1%. Energy prices fell over the month.

"The broad moderation in inflationary pressures appears to be a reflection of weaker demand growth over the past half a year and should alleviate concerns about possible stagflation," said Goldman Sachs Economic Research in a report.

The weak figures come as China's trade war with the US continues to bite and its economy shows signs of slowing. The Asian giant recorded GDP growth of 6.5% in the third quarter -- its weakest in nine years.

The growth of China's trade with the rest of the world slowed last month, with exports up 5.4% and imports up 3% on-year -- compared with 15.6% and 21.4% respectively in October.

Washington and Beijing announced a tariff truce at the start of December, to allow for trade negotiations by delaying a hike in new duties by 90 days.

The US suspended its plans to raise tariffs on $200 billion in Chinese imports to 25 percent beginning January 1, leaving them at the current 10 percent rate.

China-US trade surplus hits record in November: China data
Beijing (AFP) Dec 8, 2018 - China's trade surplus with the US ballooned in November to a record $35.6 billion as exports rose and imports shrank, official figures showed Saturday.

Exports to the US rose 9.8 percent for November on-year, while imports for the month fell 25 percent on-year, the data from China's customs administration showed.

The record monthly surplus exceeds the $31.8 billion recorded in October and comes despite a raft of US tariffs on Chinese goods.

China's trade surplus with the US for the first 11 months of the year stood at $293.5 billion, up from $251.3 billion during the same period last year.

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