One of China's inflation gauges experienced deflation for the first time in nearly two years as global commodity prices slumped and ongoing Covid-19 restrictions dampened demand.
According to data released by the National Bureau of Statistics (NBS), China's annual producer price index (PPI) declined 1.3% in October from a 0.9% increase recorded the previous month.
This was the first fall in the inflation measure since December 2020 due to the decline in iron and steel prices.
Meanwhile, consumer inflation continued to record a slow increase due to weak demand causing prices to remain low. The consumer price index (CPI) rose 2.1% year-on-year, down from a 2.8% increase in September.
Core inflation, which excludes volatile food and energy prices, was unchanged at 0.6% and has been below 1% over the past four months.
Unlike other countries, consumer and producer prices in China continue to weaken as it continues to struggle with repeated Covid-19 shutdowns.
China also faces declining overseas demand as high global inflation and fears of a recession cause consumers to curb spending.
