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Wednesday, November 9, 2016, 09:53

China Oct inflation picks up to 2.1%

By Agencies

China Oct inflation picks up to 2.1%
Chinese customers select vegetables at a supermarket in Jiujiang, east China's Jiangxi province on Oct 14, 2016. (STR / AFP)

BEIJING - China's consumer inflation rate grew at its fastest pace in six months in October as food prices rose , while producer prices accelerated to a near-five year high, exceeding expectations.

The consumer price index (CPI) rose 2.1 percent in October from a year earlier, compared with a 1.9 percent increase in September, the National Bureau of Statistics (NBS) said on Wednesday.

China Oct inflation picks up to 2.1%
Source: National Bureau of Statistics

At the same time, producer prices rose a better-than-expected 1.2 percent on-year

At the same time, producer prices rose a better-than-expected 1.2 percent on-year

Factory prices rose 1.2 percent on-year, the fastest pace since December 2011 after turning marginally positive in September for the first time in nearly five years. The reading handily beat forecasts for a 0.8 percent rise.

Stronger factory prices have helped boost industrial profits, relieving some pressure on companies squeezed by higher costs and weak demand.

China's economy expanded at a steady 6.7 percent in the third quarter and looks set to hit Beijing's full-year target, fueled by stronger government spending, record bank lending and a red-hot property market that are adding to its growing pile of debt.

China Oct inflation picks up to 2.1%
Source: National Bureau of Statistics

A jump in food prices fueled faster consumer inflation in October. Food prices rose 3.7 percent, compared with a 3.2 percent gain in the previous month.

Non-food prices inched up 1.7 percent versus September's 1.6 percent gain.

On a monthly basis, consumer prices fell 0.1 percent. Prices for health care rose 4.8 percent, the fastest-rising CPI sub-category.

China's producer price index is expected to continue to increase year-on-year in the coming months, statistics bureau spokesman Sheng Laiyun said in late October.

"I believe PPI in the coming months will continue to show positive growth year-on-year, but it could be volatile month-on-month," Sheng told a group of foreign reporters.

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