Chinese consumer inflation slows down in October

China’s consumer inflation slowed down more than expected last month, figures released on Tuesday showed.

According to the National Bureau of Statistics (NBS), consumer price index (CPI) rose 1.3% year-on-year in October compared with a 1.6% gain in the previous month and with analysts’ expectations for a 1.5% increase.

Food prices weighed on CPI, as they grew 1.9% year-on-year compared with a 2.7% gain in the previous month, the NBS said.

On a month-on-month, basis, consumer prices declined 0.3%.

Meanwhile, the producer price index declined for the 44th consecutive month, as deflationary pressure continues to weigh on the world’s second largest economy.

Producer prices declined 5.9% year-on-year last month, compared with a 5.9% drop in September and with analysts’ expectations for a 5.8% fall.

Data released on Monday showed China’s exports fell 6.9% year-on-year in October, while imports dropped by another 18.8% compared with analysts’ expectations for 3.2% and 15% decline respectively.

Both sets of figures coupled with Tuesday’s sluggish CPI and PPI readings have prompted analysts to suggest that fresh stimulus measures are likely to be on the cards in the short-term future.

“If Wednesday’s October industrial production and retail sales numbers are similarly weak, then it wouldn’t be too much of a surprise to see further easing measures between now and the end of the year, particularly since the yuan is now back at the levels it was against both the euro and the Japanese yen prior to August's surprise devaluation,” said Michael Hewson, chief market analyst at CMC Markets.