China's consumer inflation climbed in November to hit its highest level in nearly two years, while producer price deflation deepened, underscoring the challenge policymakers face in reviving domestic demand amid persistent trade tensions.

Consumer prices edged up 0.7% from a year earlier, its highest level since February last year, National Bureau of Statistics data showed Wednesday. The increase followed a 0.2% rise in October and matched the 0.7% gain expected in a Reuters poll of economists.

Factory-gate prices fell 2.2% in November from a year earlier, largely because of a higher comparison base, missing the forecast of a 2% decline and extending the deflationary stretch into its fourth year The decline followed a 2.1% fall in October .

Core inflation, which excludes volatile

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