Data from the National Bureau of Statistics of China showed early Wednesday, October 15, that the annual consumer price index (CPI), which measures inflation, fell to -0.3% in September, following a 0.4% decline in August. Expectations were for a -0.2% decline, marking the second consecutive monthly contraction. Food prices fell to a 20-month low of 4.4%, compared to a 4.3% decline in August, while energy prices fell 2.7%.
Conversely, the core index, which excludes volatile food and energy prices, rose 1% after rising 0.9% in August, recording its highest level since February 2024. Household appliance prices rose significantly, rising 5.5% from 4.6%.
Meanwhile, China’s producer price index (PPI) remained in negative territory despite a slowdown in contraction to 2.3% year-on-year in September, compared to a 2.9% decline in August, matching market expectations.