China's annual inflation rate eased to 0.3% in October 2024, down slightly from both market expectations and September’s 0.4%, marking the lowest reading since June and highlighting increased deflation risks despite recent stimulus efforts.
China inflation slows under expectations
This was the ninth consecutive month of consumer price inflation, with non-food prices slipping further (-0.3% vs -0.2% in September), led by deeper declines in transportation costs (-4.8% vs -4.1%) and housing (-0.1%, unchanged). Healthcare and education costs showed modest increases, rising by 1.1% and 0.8%, respectively. Food prices, meanwhile, moderated to a 2.9% increase from a 3.3% jump in September, which had been the highest in 20 months. Core inflation, excluding food and energy, rose 0.2% year-on-year, following a 0.1% increase in September—the smallest since early 2021.
Monthly data
On a monthly basis, the CPI dropped by 0.3%, exceeding forecasts of a 0.1% decrease, after remaining flat in September, further underscoring deflationary pressures in China’s economy.
