China’s Inflation Data Shows Mixed Signals for Consumer and Producer Prices
China’s consumer price index (CPI) turned positive in October, marking the first uptick since June and the strongest reading since January. The 0.2% month-on-month rise defied analyst expectations of stagnant growth, fueled by holiday-driven spending during the National Day and Mid-Autumn Festival period. Travel, dining, and household goods saw increased demand, though food prices remained a drag, falling 2.9% year-on-year.
Producer prices continued their downward trajectory, declining 2.1% annually—the third consecutive year of negative territory. A marginal 0.1% monthly increase did little to offset broader deflationary pressures in manufacturing. Dong Lijuan, a chief statistician, attributed the CPI rebound to domestic demand policies and seasonal factors, but structural challenges persist in the industrial sector.
