China Consumer Prices Rise Unexpectedly on Holiday Demand

Consumer prices in China recorded an unexpected increase in October, supported by stronger holiday-related demand that lifted spending on travel, food and transportation.

Official data showed that consumer prices rose 0.2% year on year, reversing a 0.3% decline in September and outperforming market expectations for another drop.

Economists said the uptick in consumer prices was largely driven by seasonal factors tied to holidays, cautioning that the boost may prove temporary amid broader economic headwinds.

Meanwhile, core inflation — which excludes volatile items such as food and energy — climbed 1.2%, suggesting a modest improvement in underlying demand conditions.