China CPI: Inflation rises 0.2% after months of stagnation in October; property and spending pressures persist

China saw a mild increase in consumer prices in October, breaking a stretch of stagnation and decline as the world’s second-largest economy continues to fight a series of economic setbacks. Official figures released on Sunday by the National Bureau of Statistics (NBS) show that the consumer price index (CPI) edged up 0.2% year-on-year last month. Before this, prices were unchanged in July and then slipped into negative territory for the next two months. The improvement comes at a time when Beijing is still trying to stabilise its post-pandemic recovery. The government is juggling several issues at once, a worsening debt crisis in the country’s massive property sector, weak consumer spending and high youth unemployment. Tensions with the United States had added to the strain. The trade conflict between the two countries intensified earlier this year. However, the situation eased at the end of October when US President Donald Trump met Chinese President Xi Jinping in South Korea, leading to a temporary detente between the two economic giants. While consumer prices nudged higher, factory-gate prices continued to fall in October.

The NBS said the Producer Price Index (PPI), which measures prices of goods before they reach wholesale or distribution, dropped 2.1% from a year earlier, slightly better than the 2.3% decline recorded in September. A drop in PPI typically tightens margins for manufacturers, particularly during aggressive price competition. Authorities have been working to curb such price wars. Even with October’s slight rise in consumer prices, China’s broader economic recovery remains under pressure, with policymakers still searching for ways to shore up growth.