MNI BRIEF: China Oct CPI Unexpectedly Rises On Holiday Demand
China’s Consumer Price Index unexpectedly rose 0.2% y/y in October, reversing September's 0.3% fall and beating expectations for a 0.1% drop, as policies kicked in and week-long holidays drove demand, according to data from the National Bureau of Statistics released Sunday.
On a monthly basis, CPI rose 0.2%, edging up from September's 0.1% growth. Core CPI, which excludes food and energy, rose 1.2% from September's 1.0%, marking the sixth consecutive month of increase and reaching its highest level since Mar 2024.
| Key Drivers | Month-on-month Change | Year-on-year Change | ||
| Oct | Sep | Oct | Sep | |
| Pork | -2.5% | -0.7% | -16.0% | -17.0% |
| Vegetables | 4.3% | 6.1% | -7.3% | -13.7% |
| Gold Jewelry | 10.2% | 6.5% | 50.3% | 42.1% |
| Tourism | 2.5% | -6.1% | 2.1% | 0.9% |
China’s Producer Price Index fell 2.1% y/y in October, narrowing from September's 2.3% drop, marking the 37th straight month of decline.
On a monthly basis, PPI rose 0.1%, edging up from the previous 0.0%, marking the first increase this year, with prices in the coal and photovoltaic sectors having risen for more than two consecutive months as supply and demand rebalanced.
