China: Inflation stabilizes at low levels in October
November 9, 2014
In October, consumer prices were flat over the previous month, which followed the 0.5% increase recorded in September. The monthly reading reflected that lower prices for food, transportation and communications were offset by higher prices in most of the remaining categories.
Annual inflation stabilized at the previous month’s 1.6% in October. The print was in line with market analysts’ expectations and remained at the lowest rate since January 2010. Consequently, the trend continues to point downward, with annual average inflation inching down from 2.3% in September to 2.2% in October.
Meanwhile, the producer price index fell 2.2% in October over the same month last year (September: -1.8% year-on-year), which marked the lowest rate in seven months. Moreover, the print exceeded the 2.0% decline that market analysts had expected. The annual average variation of the producer price stabilized at the previous month’s minus 1.6% in October.