Global oil prices remained elevated during much of last month, raising costs for coal mining, oil and natural gas extraction processing, chemicals and other energy-intensive sectors, a key driver of producer-price inflation.
Those upstream price pressures have yet to fully feed through to consumers amid soft demand conditions.
The producer price index climbed by 5.7 percent from a year earlier, compared with a five percent increase in September, beating economists’ forecasts for a 5.3 percent gain in a poll, data from the National Bureau of Statistics showed.
The consumer price index rose by 0.7 percent year on year, after a 0.9 percent rise in September, to come in just below economists’ expectations for a 0.8 percent increase.
On a monthly basis, the CPI matched forecasts for an unchanged outcome after edging up 0.2 percent in September.
While the world’s second-largest economy grew faster than expected in the third quarter, buoyed by resilient exports, weak household demand has continued to constrain consumer spending.
Ongoing trade tensions and an increasingly uncertain global outlook are also clouding the outlook for exports.
External shocks are having a greater impact, while the imbalance between robust supply and weak domestic demand remains pronounced, said an official at China’s state planner last month.
China’s struggling stock market, where AI-related stocks have tumbled from lofty valuations on concerns about AI demand and export restrictions targeting China, could further weigh on consumer spending.
Core inflation, which excludes volatile food and energy prices, eased to 0.8 percent in October from one percent in September, offering a gauge of underlying price pressures in the economy. (Reuters)
