Mainland China’s Consumer Price Index (CPI) recorded a growth of 2.5% YoY in October, while Producer Price Index (PPI) increased 3.3% YoY, according to data from the National Bureau of Statistics (NBS) on November 9. The October CPI growth reading was the same as the 2.5% growth in September, while PPI dropped slightly from the 3.6% growth recorded last month.
Food and alcohol prices continue to rise, reporting at a 2.9% increase YoY. Non-food prices also saw a 2.4% increase YoY. Costs in the service industry continue to show signs of inflation, with prices in transportation, healthcare, education, and entertainment all increasing. This is the fourth straight month that PPI growth has slowed, indicating a continued slide in China's economic momentum, as the country is finding ways to combat the negative effects caused by the trade war with the US. Industrial manufacturing output and input cost both increased, recording at 3.9% and 4.5%, respectively.