Chinese inflation slowed in October to 0.1% on month from 0.8% in September and came in below consensus of 0.2%.
On year, though, a rise in food prices helped CPI increase to an eight-month high of +3.2% from +3.1%, but the metric still undershot forecasts of +3.3% and was within the government's 2013 target of +3.5%. While China's leaders have recently warned about inflation and the central bank has been tightening, UBS economist Wang Tao doesn't believe rising prices are "going to be a serious threat anytime soon."
China's producer price index dropped for the 20th month in a row, falling 1.5% vs -1.3% and -1.4%. The trend indicates softness in demand for raw materials and factory products, and suggests that China still very much has to contend with deflationary forces even as annual inflation rises.
The growth in industrial production increased to 10.3% on year from 10.2% and exceeded forecasts of 10%.
The rise in retail sales held steady at 13.3% but slightly missed predictions of 13.4%.
As expected, urban investment grew 20.1%, down from 20.2% a month earlier.
The data dump comes as Chinese leaders meet to discuss major economic reform.