In October, China’s CPI grew only 0.3% yoy, below the expected 0.4% yoy, and marking a slight drop from September’s 0.4% yoy. Core CPI, which excludes food and energy prices, rose marginally from 0.1% yoy to 0.2% yoy, suggesting minimal underlying inflationary momentum. Month-over-month, CPI fell by -0.3%, further indicating subdued domestic demand.
Since March last year, China’s CPI growth has been hovering around zero, contributing to concerns over prolonged deflationary trends and lackluster domestic consumption. Cumulatively, CPI has grown by only 0.3% from January to October, far below the government’s annual target of 3%. These figures underscore subdued consumer activity and insufficient demand to drive price increases.
Meanwhile, China’s PPI saw steeper-than-expected decline, slipping from -2.8% yoy to -2.9% yoy, marking the 25th consecutive month of negative growth. This drop was deeper than market forecasts of -2.5% yoy and signals ongoing pricing pressures within the production sector.
