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Daily Read: Business

China's Producer Prices Hit Four‑Year High

China’s producer price index (PPI) rose 5.7% in October, the fastest increase since June 2022 and above the 5.3% forecast, driven by sharp gains in mining and raw‑material prices and strong external demand. The consumer price index (CPI) slowed to 0.7% in the same month, its first decline after two consecutive rises, missing the 0.8% expected by economists and falling from 0.9% in September. Core inflation, which excludes food and energy, fell to 0.8% from 1.0% in September. Gasoline prices were the largest contributor to the CPI rise, while food prices dropped more than expected, offsetting the increase. China’s economy showed signs of expansion, with third‑quarter growth exceeding forecasts and retail sales posting a sharp uptick in September. The CSI 300 index gained 0.56% following the data release. Analysts noted that weak domestic demand, largely due to the property market, continues to restrain inflation and dampen consumer confidence.

· CNBC

The essential points

  1. 01PPI climbed 5.7% in October, the steepest rise since June 2022
  2. 02CPI slowed to 0.7%, the first deceleration after two months of increases
  3. 03Gasoline prices drove the CPI rise, while food prices fell sharply
  4. 04Property‑market weakness keeps domestic demand subdued, limiting inflation momentum
The full brief

China’s producer price index (PPI) rose 5. 7% in October, the fastest increase since June 2022 and above the 5. 3% forecast, driven by sharp gains in mining and raw‑material prices and strong external demand. The consumer price index (CPI) slowed to 0. 7% in the same month, its first decline after two consecutive rises, missing the 0.

8% expected by economists and falling from 0. 9% in September. Core inflation, which excludes food and energy, fell to 0. 8% from 1. 0% in September.

Gasoline prices were the largest contributor to the CPI rise, while food prices dropped more than expected, offsetting the increase. China’s economy showed signs of expansion, with third‑quarter growth exceeding forecasts and retail sales posting a sharp uptick in September. The CSI 300 index gained 0. 56% following the data release. Analysts noted that weak domestic demand, largely due to the property market, continues to restrain inflation and dampen consumer confidence.