Chinese consumer prices slow down to 1.6% pace in September versus 1.7% expected

The rate of consumer price inflation slipped in China in September, led by lower food prices, according to the National Bureau of Statistics, although economists currently project a pick-up to materialize next year.

Prices, as measured by the country's consumer price index, slipped to a 1.6% year-on-year pace last month, from the 2% rate of advance seen in August.

Food price inflation moderated to a 2.3% clip from 3% while non-food prices were only somewhat lower, rising by 1.3% in comparison to August's rate of climb of 1.5%.

"Inflation has now fallen to its lowest levels since January 2010, a 56-month low," Barclays Research pointed out.

The broker forecasts Chinese inflation of 2.8% next year.