The politically sensitive food inflation rose to 15.5 percent in October, the highest since June 2008, from 11.2 percent in September, as pork prices soared 101.3 percent, the eighth straight month of increase, after a 69.3 percent gain in September. Also, cost rose faster for both edible oil (3.3 percent vs 2.3 percent) and eggs (10.4 percent vs 8.2 percent). Meantime, prices fell for both fruits fell (-0.3 percent vs 7.7 percent) and fresh vegetables (-10.2 percent vs -11.8 percent).
Non-food price inflation eased slightly (0.9 percent vs 1 percent in September), amid a softer rise in cost of rent, fuel & utilities (0.5 percent vs 0.7 percent), healthcare (2.1 percent vs 2.2 percent), clothing (1.2 percent vs 1.6 percent), and other goods and services (5.5 percent vs 5.8 percent). In addition, transport and communication prices dropped further (-3.5 percent vs -2.9 percent). On the other hand, inflation was unchanged for household goods & services (at 0.6 percent), while prices of education, culture & recreation advanced faster (1.9 percent vs 1.7 percent).
Annual core inflation, which strips out volatile food and energy prices, was at 1.5 percent in October, the same as in September.
On a monthly basis, consumer prices increased by 0.9 percent in October, the same as in September, and higher than market estimates of 0.7 percent.
Meantime, China's producer price index declined by 1.6 percent year-on-year in October, following a 1.2 percent decrease in the previous month and compared to market expectations of a 1.5 percent drop. It was the sharpest fall in producer prices since July 2016, as cost of means of production dropped faster (-2.6 percent vs -2 percent in September), led by raw materials (-5.6 percent vs -4.8 percent), processing (-1.5 percent vs -1.2 percent), and extraction (-1.9 percent vs 0.6 percent). In addition, prices went up further for consumer goods (1.4 percent vs 1.1 percent), of which food production (4.4 percent vs 3.3 percent), daily use goods (0.4 percent vs 0.8 percent), clothing (0.6 percent vs 0.9 percent) but fell for durable goods (-1.8 percent vs -1.8 percent). On a monthly basis, producer prices rose by 0.1 percent in October. Considering the first ten month of the year, producer prices fell 0.2 percent compared with the same period of 2018.