China's consumer prices rose 0.2% year-on-year in October 2025, reversing two months of decline, but both CPI and PPI remain in deflationary territory.

China's consumer prices rose 0.2% year-on-year in October 2025, reversing two months of decline and exceeding forecasts, while the producer price index fell 2.1% annually, a smaller drop than in September and slightly better than expected. Monthly consumer prices also rose 0.2%, and core inflation hit 1.2% annually, the highest in 20 months. Despite the modest improvement, both CPI and PPI remain in deflationary territory, reflecting weak demand, a struggling property market, and ongoing industrial overcapacity. The GDP deflator has been negative for over two years, the longest stretch on record. Beijing has lowered its 2025 inflation target to about 2%, the lowest in decades, but officials still expect to meet the 5% GDP growth goal.