China Inflation Stays Low in September, Giving Central Bank Room to Support Growth
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Deflationary pressure still a risk in China as CPI remained flat in September mainly due to declining food prices.
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Producer price deflation continued to ease in September due to higher oil and commodity prices.
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Core inflation stayed steady at 0.8% in September, highlighting stable domestic consumption.
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Soft inflation backdrop gives PBOC space to stay accommodative to support growth.
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CPI likely to only push above 1% in 2024, forecasts to remain soft in 2023.