China October Data Shows Deflationary Pressure Persists

China’s October inflation data showed persisting if not intensifying deflationary pressure, spurring analysts to expect more moves to stimulate the slowing economy by year-end.

The October consumer price index (CPI) cooled more than expected, rising 1.3 percent from a year earlier. compared with 1.6 percent in September, National Bureau of Statistics (NBS) data showed on Tuesday. A Reuters poll expected a 1.5 percent rise.

The producer price index (PPI) fell 5.9 percent in October from a year earlier, equal to the September decline and slightly worse than economists’ forecasts of a 5.8 percent drop.

On a monthly basis, consumer prices fell 0.3 percent, compared with a 0.1 percent increase in September.

Reuters

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