Mubasher: Chinese consumer inflation rose in October by more than analysts’ had expected, while producer prices also registered an increase.
The country’s consumer price index (CPI), the measure for inflation, increased by 1.9% last month compared to the prior year period, data released by China’s National Bureau of Statistics (NBS) on Thursday indicated.
Analysts had expected a 1.8% rise in year-on-year inflation for October against the 1.6% rise recorded in September.
Meanwhile, the producer prices index (PPI) grew 6.9% year-on-year in October, but unchanged month-on-month, whereas analysts had forecast a 6.6% rise for the index.
The Chinese economy had recorded a “better-than-expected growth” of around 6.9% in the period from January to September, backed mainly by the recovery of its manufacturing and industrial sectors, reported CNBC.
The gains were attributed to higher government spending, a strong property market and “an unexpected strength in exports.”
“But property and construction activity, two of the economy's main growth drivers, are starting to slow under the weight of government measures to cool heated housing prices and higher borrowing costs,” CNBC said.
By 8:00 am GMT, the yuan fell against the dollar by 0.1% to CNY 6.6334.