China's consumer prices fell 0.2% year-on-year in October.
Core inflation slowed to 0.6% in October from 0.8% in September.
Factors contributing to low inflation include a housing slump, weak consumer confidence, falling global commodity prices, and decreased demand for Chinese-made goods.
The decline is largely due to a 30.1% drop in pork prices.
China's economy has shown signs of deflation in October, as indicated by a 0.2% year-on-year decrease in consumer prices. The data, reported by China's National Bureau of Statistics, has sparked concerns about the country's economic recovery. The decline in consumer prices is largely attributed to a significant 30.1% drop in pork prices, a key component of China's consumer price index. Core inflation, which excludes food and fuel prices, also slowed to 0.6% in October from 0.8% in September.
Several factors have been identified as contributing to the low inflation. These include a slump in the housing market, weak consumer confidence, falling global commodity prices, and decreased demand for Chinese-made goods. The decline in consumer prices has also been linked to reduced consumer demand following the mid-Autumn holiday and a high supply of agricultural products.
However, some economists argue that China is dealing with 'low underlying inflation' rather than deflation. Robert Carnell, regional head of research, Asia-Pacific, at ING, attributes the situation to weak domestic demand and a supply excess. Despite the differing views, the data underscores the challenges China faces in combating persistent disinflation amid weak demand.
Bruce Pang, chief economist at Jones Lang Lasalle, highlighted the challenge of combating persistent disinflation amid weak demand.
Factors contributing to low inflation include a housing slump, weak consumer confidence, falling global commodity prices, and decreased demand for Chinese-made goods.
Robert Carnell, regional head of research, Asia-Pacific, at ING, argued that China is dealing with 'low underlying inflation' rather than deflation, attributing the situation to weak domestic demand and a supply excess.
Accuracy
Robert Carnell, regional head of research, Asia-Pacific, at ING, argued that China is dealing with 'low underlying inflation' rather than deflation, contradicting the other articles which state that China has slipped back into deflation.