China October Data Shows Deflationary Pressure Persists

China’s October inflation data showed persisting if not intensifying deflationary pressure, spurring analysts to expect more moves to stimulate the slowing economy by year-end.

The October consumer price index (CPI) cooled more than expected, rising 1.3 percent from a year earlier. compared with 1.6 percent in September, National Bureau of Statistics (NBS) data showed on Tuesday. A Reuters poll expected a 1.5 percent rise.

The producer price index (PPI) fell 5.9 percent in October from a year earlier, equal to the September decline and slightly worse than economists’ forecasts of a 5.8 percent drop.

On a monthly basis, consumer prices fell 0.3 percent, compared with a 0.1 percent increase in September.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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