China’s consumer price index eased to 0.7% year-on-year in October 2026 from 0.9% the prior month, below expectations, with food prices falling 2.9% amid ample supply and subdued household spending while non-food inflation held at 1.5%. Year-to-date CPI stands near 0.9%, reflecting persistent weak domestic demand that has limited pass-through from surging producer prices (PPI at 5.7%, the fastest since 2022, driven by energy costs). The People’s Bank of China has maintained an accommodative stance with targeted tools rather than broad stimulus, while exports remain strong and property-sector pressures continue to weigh on consumption. Analysts project full-year 2026 CPI near 0.8–0.9%, aligning with trader consensus on the 0.1–1.0% ranges as the most probable outcomes absent stronger demand recovery.