BEIJING: China’s consumer prices has returned to growth in October after falling for two straight months, while the decline in factory-gate prices continued to narrow in October, official data shows.
Data from the National Bureau of Statistics (NBS) showed that China’s consumer price index (CPI), the main gauge of inflation, rose 0.2% year-on-year (y-o-y) in October, following a 0.3% drop in September.
The increase suggests a gradual pickup in domestic demand and business activity as Beijing steps up policy support to shore up growth through to the end of the year.
Analysts said that while short-term holiday effects will fade, the continued rise in core inflation and the narrowing declines in factory-gate prices point to strengthening underlying demand and early signs of a broad-based rebound.
Looking to the fourth quarter, they said China’s economy is expected to maintain a steady recovery, supported by stronger policy stimulus and gradual improvements in consumption and industrial activity.
The core CPI rose 1.2% y-o-y in October after a 1% increase in September, marking the sixth consecutive month of expansion and the highest rise since February 2024.
“The CPI rebound reflects both a short-term holiday-driven boost and a longer-term improvement in domestic demand,” said Tang Guanghua, an analyst at Shenyin & Wanguo Futures Co. — China Daily/ANN
