China’s inflation returns to negative territory: -0.2% year-on-year in October, down from 0% previously


Banca March: Yesterday in China, inflation returned to negative territory and continues to reinforce expectations of the need for further monetary stimulus. Specifically, October’s CPI was -0.2% year-on-year versus 0% previously and one tenth of a percentage point lower than expected. By components, it should be noted that the fall in inflation came from goods prices, which fell by -1.1% year-on-year in October and accumulated seven consecutive months of declines, especially due to the -4% drop in food prices. Services prices rose by +1.2% year-on-year and continue to point to more sustained demand. On the other hand, lower energy costs are being passed on to industrial producer prices, which fell again in October by -2.6% year-on-year compared with -2.5% in the previous month.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.