Inflation in China Slows More Than Expected

China’s consumer inflation moderated more than expected in October, while producer prices extended their decline, flagging persistent deflationary pressure in the world’s second largest economy.


The October consumer price index  rose 1.3 percent from a year earlier, compared with 1.6 percent in September, National Bureau of Statistics data showed on Tuesday. The reading came in below expectations of a 1.5 percent rise, according to a Bloomberg poll of economists.

The producer price index fell 5.9 percent in October from a year earlier, equal to the 5.9 percent decline in September and slightly worse than economists’ forecasts of a 5.8 percent drop.
Let us recall that in its last report the PBOC underlined that it will closely monitor the trend of prices and will act if needed. Today’s data certainly raises probability of further easing in China.