China’s Consumer Price Index (CPI) remained unchanged month-on-month in October, while the Producer Price Index (PPI) increased by 5.7%, reflecting rising energy costs and stronger seasonal demand ahead of the winter peak.
According to the National Bureau of Statistics (NBS), producer prices rose by 0.7% month-on-month, although the pace of increase slowed by 0.5 percentage points compared to September.
The increase was largely driven by rising international energy prices, which pushed prices in China’s domestic oil and natural gas extraction industry up by 6%, while coal mining and washing prices increased by 2.7%.
The NBS said higher energy costs and increased demand for thermal coal and natural gas ahead of winter also drove up prices in downstream industries, including refined petroleum products, organic chemical raw materials, coal processing, and gas production and supply.
Together, the six energy-related industries contributed approximately 0.61 percentage points to the monthly PPI increase, accounting for more than 80% of the overall rise.
Dong Lijuan, Chief Statistician at the NBS Urban Surveys Department, said domestic gasoline prices increased by 4.2% in October, contributing approximately 0.14 percentage points to the monthly CPI movement.
She added that increased travel during China’s National Day holiday pushed service prices up by 0.1%, contributing about 0.04 percentage points to the CPI increase.
However, declining prices of eggs, fresh vegetables and fresh fruits collectively reduced the monthly CPI by approximately 0.13 percentage points.
The figures highlight the influence of international energy markets, seasonal demand and domestic consumption patterns on China’s inflation trends.