China’s annual inflation rate eased to 0.7% in October 2026, down from September’s three‑month high of 0.9%. The reading came in slightly below market expectations of 0.8% and was the lowest since June.
Non-food inflation rose 1.5%, supported by a sharper increase in transport costs (5.3% vs. 4.3% in September). This was largely due to higher fuel prices, effective from October 29, and stronger travel demand during the Golden Week holidays in the first week of October.
Food prices, by contrast, fell for the seventh consecutive month, dropping 2.9% after a 1.7% decline in September. This marked the steepest fall in a year and was driven mainly by a further slide in pork prices, as ample supply and subdued consumption continued to weigh on the market.
Inflation also softened for clothing (1.1% vs. 1.2%) and healthcare (2.4% vs. 2.7%). Education costs edged up slightly (1.5% vs. 1.4%), while housing costs remained weak, unchanged at -0.3%.
On a monthly basis, consumer prices were flat, in line with market forecasts, following a 0.2% increase in September.
