China's Consumer Price Index Rises 0.7% in October 2026, Driven by Non-Food Sectors Despite Food Price Drop

In October 2026, China’s Consumer Price Index (CPI) registered a year-on-year increase of 0.7%, according to data released by the National Bureau of Statistics. While the headline figure demonstrates a positive overall price growth, the underlying dynamics reveal a notable divergence between food and non-food sectors across the national economy.

During the same period, food prices experienced a significant decline, falling by 2.9% compared to the previous year. Analysts note that this downward pressure from the food sector acted as the primary drag on the overall CPI growth rate, offsetting stronger inflationary pressures observed in other segments of the market. The seasonal abundance of certain agricultural products and adjustments in supply chains are widely considered contributing factors to the subdued food prices.

Conversely, non-food prices demonstrated a marked upward trend, providing the necessary momentum to keep the headline CPI in positive territory. Within the non-food category, specific segments recorded extraordinary gains. For instance, data storage devices surged by an impressive 45.4% year-on-year, reflecting ongoing global supply chain adjustments and high demand for technological components.

Simultaneously, the Producer Price Index (PPI) for October 2026 recorded a robust year-on-year increase of 5.7%. This surge in factory-gate prices marked the highest level recorded since June 2022, signaling strengthening industrial demand and rising costs for raw materials. Economic observers point out that the combination of a moderate CPI and a high PPI highlights a complex economic environment where upstream cost pressures are gradually filtering through the broader market, even as consumer-facing food prices remain subdued.

Sources: China.com

Aggregated summary. Original: 中华网