China consumer prices fall more than expected in September

China's consumer and producer prices continued to decline on an annual basis in September, data from the National Bureau of Statistics of China showed Wednesday.

The national consumer price index, a key gauge of inflation, fell 0.3% year-on-year in September, easing slightly from a 0.4% drop in August, but exceeding the FXStreet-cited consensus forecast of a 0.1% decline.

"Every sector, from steel to solar panels, is trapped in a price war so relentless it feels like the corporate equivalent of trench warfare — companies undercutting each other just to live to fight another day," commented Stephen Innes, managing partner at SPI Asset Management.

On a month-on-month basis, consumer prices rose 0.1%, up from a flat reading in August, but still lower than the expected 0.2% increase.

Meanwhile, the producer price index matched market expectations at minus 2.3% year-on-year in September, narrowing from a 2.9% decline in August.