China: Inflation inches up in October
November 9, 2013
Consumer prices increased 3.2% over the same month last year in October. The print came in above the 3.1% increase tallied in September, but undershot the 3.3% rise that markets had expected. The increase, which marked the highest level since February, mainly reflected higher prices for food - in particular for fresh vegetables. The trend moved upward in October, with annual average inflation inching up from 2.4% in September to 2.5% in October.
Meanwhile, the producer price index fell 1.5% in October over the same month last year, which was down from the 1.3% drop tallied in September. September's result marked the highest reading since April 2012. October's decrease exceeded the 1.4% decline that market analysts had expected.
The government expects that inflation will average 3.5% this year. FocusEconomics Consensus Forecast participants expect that inflation will average 2.6% in 2013, which is unchanged from last month's estimate. In 2014, the panel sees inflation rising to 3.1%, which is also unchanged from last month's forecast.