Data released by the National Bureau of Statistics on November 9 showed that in October, China's Consumer Price Index (CPI) rose 0.2% year-on-year and 0.2% month-on-month. Meanwhile, the Producer Price Index (PPI) fell 2.1% year-on-year, with the decline narrowing by 0.2 percentage points from the previous month—marking the third consecutive month of contraction easing.
"The effects of policies to boost domestic demand continued to materialize in October, coupled with the impact of the National Day and Mid-Autumn Festival holidays, driving both the year-on-year and month-on-month CPI up by 0.2%. The core CPI, excluding food and energy prices, rose 1.2% year-on-year, expanding for the sixth straight month," said Dong Lijuan, Chief Statistician at the Urban Department of the National Bureau of Statistics.
Year-on-year, CPI shifted from a 0.3% decline in September to a 0.2% increase in October. "Food and energy prices remained low but saw narrower declines," Dong noted. Service prices have been gradually recovering since March, rising 0.8% this month—0.2 percentage points higher than the previous month. Industrial consumer goods prices, excluding energy, increased 2.0%, extending their upward trend for the sixth consecutive month.
Month-on-month, CPI growth expanded by 0.1 percentage points, slightly exceeding seasonal levels. Dong analyzed that service prices rebounded from a 0.3% decline in September to a 0.2% increase in October, 0.2 percentage points above seasonal levels, contributing approximately 0.07 percentage points to the month-on-month CPI rise. During the holiday period, travel demand surged, driving up hotel accommodation, airfare, and tourism prices by 8.6%, 4.5%, and 2.5%, respectively—all exceeding seasonal trends.
"Food prices rose 0.3%, higher than seasonal levels. Industrial consumer goods prices, excluding energy, increased 0.3%, adding about 0.07 percentage points to the month-on-month CPI. Notably, domestic gold jewelry prices surged 10.2% due to rising international gold prices," Dong added.
PPI, a leading economic indicator, also showed positive momentum. For the first time this year, PPI recorded a month-on-month increase of 0.1%, shifting from flat growth in September. Dong attributed this to improved supply-demand dynamics lifting prices in certain sectors. Coal mining and washing prices rose 1.6% month-on-month, coal processing prices increased 0.8%, and photovoltaic equipment and component manufacturing prices climbed 0.6%—all extending gains for over two months. Prices for cement manufacturing, computer manufacturing, lithium-ion battery production, and integrated circuit manufacturing all turned from declines to increases.
Year-on-year, PPI's decline narrowed by 0.2 percentage points to 2.1%, marking the third consecutive month of improvement. "Stricter capacity audits and safety regulations, alongside winter stockpiling and rising electricity demand, helped narrow the year-on-year decline in coal mining and washing prices by 1.2 percentage points. Market competition optimization and the phase-out of outdated capacity also contributed to smaller price drops in photovoltaic equipment, battery manufacturing, and automobile production," Dong explained.
The accelerated development of a modern industrial system and the orderly release of consumer demand supported price increases in related sectors. "Technological innovation is driving industrial upgrades, lifting prices in non-ferrous metal smelting, electronic materials manufacturing, and other fields. Policies to stimulate consumption have also taken effect, with prices for arts and crafts, sports equipment, and nutritional foods rising—including an 18.4% surge in handicraft and ceremonial goods manufacturing," Dong stated.