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China’s consumer prices rise slightly in October amid economic uncertainty
After two consecutive months of decline, China’s consumer prices recorded a modest increase in October, signaling a tentative improvement in domestic demand despite persistent economic challenges.
According to the National Bureau of Statistics, the Consumer Price Index (CPI) — a key measure of inflation — rose by 0.2% year-on-year, exceeding analysts’ expectations of a slight decline. On a monthly basis, prices also rose by 0.2%, marking the first positive trend since June 2025.
This small uptick offers a glimmer of hope for policymakers struggling to revive consumer confidence. China has been battling a prolonged real estate crisis, high youth unemployment, and subdued household spending since the COVID-19 pandemic.
Economists warn, however, that the threat of deflation still looms. Deflation, while temporarily beneficial to consumers, can discourage spending and investment, creating long-term economic stagnation.
At the same time, the Producer Price Index (PPI), which reflects factory-gate prices, continued its downward trend, falling by 2.1% year-on-year. Though the drop was slightly less steep than in September, it highlights the persistent pressure on Chinese manufacturers amid intense price competition.
The Chinese government continues to implement fiscal and monetary measures aimed at stimulating domestic demand and stabilizing key sectors. Meanwhile, relations with the United States — particularly following recent trade discussions between Presidents Donald Trump and Xi Jinping — could play a decisive role in shaping the country’s economic trajectory in the coming months.