China October inflation data: CPI 0.2% y/y (expected 0%), PPI -2.1% y/y (expected -2.2%) | investingLive

Inflation data from China for October 2025, Consumer Price Index (CPI) and Producer Price Index (PPI).

CPI +0.2% y/y

• expected 0.0%, prior -0.3%

CPI +0.2% also for the m/m

• prior +0.1%

PPI -2.1% y/y (producer prices have now fallen for a 37th straight month)

• expected -2.2%, prior -2.3%

This is slightly better than expected. The CPI is still flirting with deflation but has come in a touch stronger than expected. The PPI is still locked into deflation but there has been a small improvement. Its still going to be a long path back out of deflation for producer prices though.

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Some background to this if you need it.

Deflation in China has persisted since the pandemic, worsened by

• a property slump,
• weak consumer confidence,
• industrial overcapacity that has pushed companies into price wars
• and, of course, tariff headwinds this year impacting demand also

Despite policy efforts to curb excess competition and stabilise prices, China’s GDP deflator—the broadest gauge of economy-wide prices—has been negative for more than two years, the longest such run since records began in 1992.

Beijing has lowered its official 2025 inflation target to around 2%, the lowest in over two decades. Inflation, however, remains near zero, reflecting deep structural imbalances. Analysts expect China remains likely to meet its 5% full-year target.