China's consumer price index (CPI) rose 0.2% year-on-year in October 2025, marking a return to growth after recent fluctuations, according to data released Sunday by the National Bureau of Statistics (NBS). The monthly CPI also increased by 0.2%, reflecting steady momentum in domestic demand.
Core Inflation Strengthens
Excluding volatile food and energy prices, the core CPI climbed 1.2% year-on-year – its sixth consecutive month of accelerating growth. NBS statistician Dong Lijuan attributed the rebound to effective policies stimulating domestic consumption and heightened economic activity during the National Day and Mid-Autumn Festival holidays.
Factory Gate Prices Show Improvement
While the producer price index (PPI) fell 2.1% year-on-year, this represented a narrower decline compared to September's 2.3% drop. Notably, October saw a 0.1% month-on-month PPI increase, the first positive movement this year. Dong highlighted recovering industrial supply-demand dynamics and global commodity price trends as key drivers.
Analysts suggest these indicators point to stabilizing economic conditions, with consumer spending and industrial activity showing synchronized recovery signals.
