China: Inflation falls in October to lowest level in nearly three years
November 9, 2012
In October, consumer prices increased 1.7% over the same month last year, down from 1.9% in September. The reading surprised the market on the downside, as analysts expected inflation to remain unchanged at September's rate and marked, in fact, the lowest level since January 2010. The monthly print mainly reflected how lower food prices offset higher prices in the remaining categories. As a result of the monthly reading, inflation continued the downward trend in place since February, with annual average inflation easing from 3.3% in September to 3.0% in October. Meanwhile, the producer price index fell in October 2.8% over the same month last year. The reading followed the 3.6% drop observed in September. Despite the softer drop, annual average producer price inflation slowed, falling from minus 0.4% in September to minus 1.0%.