China's Inflation Slows as Food Prices Drop and Consumer Demand Remains Weak
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China's consumer price index fell 0.2% in October, indicating continuing weak domestic demand and deflationary pressure.
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Food prices dropped 4% while non-food prices rose 0.7%, with core inflation at 0.6%.
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Economists say China remains in a deflationary environment with sluggish domestic demand.
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Lower food prices due to good harvests and weak post-holiday consumption contributed to the CPI drop.
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In contrast, China's producer price index fell 2.6%, reflecting declining factory prices.