Dec 11 (Reuters) - Prices of copper and most base metals dropped on Monday as a firmer dollar made the greenback-priced commodities more expensive to holders of other currencies, while traders and investors also eyed key U.S. inflation data.
Three-month copper on the London Metal Exchange fell 0.7% to $8,393 per metric ton by 0450 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange rose 0.6% to 68,220 yuan ($9,491.87) a ton.
The dollar was on the front foot, with a reading on U.S. inflation and the Federal Reserve's last policy meeting for the year likely to set the tone for the week, while rising deflationary pressure in China weighed on the yuan.
"With so many key data release points this week, metals should continue to see sell-offs ahead of weak data prints this week," said a metals trader.
"A lot of funds trade metals based on this growth and inflation matrix. Lower growth and lower inflation mean lower implied metal prices," the trader said.
In China, the world's top metals consumer, consumer prices fell the fastest in three years in November while factory-gate deflation deepened, indicating rising deflationary pressures as weak domestic demand casts doubt over the economic recovery.
LME aluminium dipped 0.3% to $2,128 a ton, nickel declined 1.1% to $16,620, zinc was down 0.6% at $2,384.50, tin shed 0.4% to $24,460, while lead rose 0.3% to $2,030.50.
SHFE aluminium lost 0.6% to 18,300 yuan a ton, nickel was almost flat at 131,800 yuan, zinc dropped 0.6% to 20,515 yuan, tin declined 0.6% to 206,340 yuan, while lead rose 0.5% to 15,550 yuan.
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DATA/EVENTS (GMT)
-- UK House Price Rightmove MM, YY Dec
($1 = 7.1872 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips)
