PiConsumer prices in China rose more than expected in October, mainly due to an increase in the supply of agricultural products attributed to good weather conditions.
Consumer prices in China fell 0.2% year-on-year in October 2023, compared to unchanged in the previous month and analysts had expected a 0.1% drop. The statistics office said the fall in the CPI was due to an abundant supply of agricultural products due to good weather and a drop in consumption after the Golden Week holiday in early October.
Food prices posted their biggest drop in 25 months (-4% vs. -3.2% in September), falling for the fourth month in a row due to a sharp drop in pork prices.
Meanwhile, non-food inflation was flat (at 0.7%) as costs continued to rise for clothing (1.1% vs. 1.1%), housing (0.3% vs. 0 .2%), health (1.3% vs. 1.3%) and education (2.3% vs. 2.3%).
At the same time, transport prices decreased at a slower rate (-0.9% versus -1.3%).
Core consumer prices, excluding food and energy prices, rose 0.6% year-on-year in October, the slowest in 4 months.
On a monthly basis, the CPI unexpectedly fell 0.2%, compared with consensus for a flat rate and after rising 0.2% in September.
