China's consumer inflation unexpectedly rises again

VTV.vn - Figures released yesterday show that consumer inflation in China unexpectedly increased again in October.

China's consumer inflation unexpectedly rises again

China's consumer price index (CPI) rose 0.2 percent year-on-year in October, marking a rebound after two consecutive months of decline, according to the National Bureau of Statistics. Core consumer prices (excluding food and energy) rose 1.2 percent, the highest in 20 months, thanks to holiday demand and policies to support domestic consumption. Meanwhile, the producer price index (PPI) fell 2.1 percent, less than in September but still maintaining a 37-month decline streak. Persistent deflationary pressures are causing Chinese consumers to curb spending and squeezing corporate profits, making economic growth difficult.

China's economy recorded its slowest growth in a year in the third quarter of 2025, while youth unemployment remained high despite a slight decline in September.

Policymakers have remained cautious, avoiding large-scale stimulus, with the People’s Bank of China (PBoC) keeping interest rates unchanged for the past five months – partly due to signs of a recovery in exports following an interim trade deal with the US.

Analysts say China’s economy is still likely to meet the government’s growth target of around 5% this year. However, persistent deflation in the manufacturing sector, sluggish factory activity and a gloomy export outlook for the coming months all suggest the recovery is weakening.

Faced with an unsustainable growth outlook, China’s leaders have signaled a strong shift toward boosting consumption over the next five years, reducing reliance on investment and exports – two drivers increasingly exposed to risks due to international trade tensions and limited investment space. However, these measures will take time to take effect.

Source: https://vtv.vn/lam-phat-tieu-dung-trung-quoc-bat-ngo-tang-tro-lai-100251110100949071.htm