China’s inflation turned positive in October, signaling tentative signs of price stabilization e. Headline CPI rose 0.2% yoy, beating expectations of flat growth and rebounding from September’s -0.3%. The return to positive territory, driven largely by firmer service prices, suggests domestic demand may be gradually recovering amid ongoing policy support.
The breakdown showed goods prices still fell -0.2% yoy, while service prices rose 0.8%. Food prices remained weak, down -2.9%. But core CPI—excluding food and energy—accelerated from 1.0% to 1.2%, the highest since March 2024.
Producer prices also edged higher, with PPI contracting -2.1% yoy, less than September’s -2.3% and above forecasts of -2.3% yoy. It marked the 37th straight month of decline but reflected narrower price falls in key industrial sectors.
