Oct CPI 0.2 yy vs 0.0 in Sep
Oct CPI 0.1 mm vs 0.2 in Sep
Oct PPI 2.6 yy vs 2.5 in Sep

BEIJING, Nov 9 Reuters China39;s consumer prices swung lower in October, as key gauges of domestic demand pointed to weakness not seen since the pandemic, while factorygate deflation deepened, casting doubts over the chances of a broadbased economic recovery.

The consumer price index CPI dropped 0.2 in October from a year earlier and slipped 0.1 from September, data from the National Bureau of Statistics NBS showed on Thursday.

The declines undershot the median 0.1 yearonyear fall and flat monthonmonth reading predicted in a Reuters poll. Both indicators were last negative at the same time in November 2020 during the COVID19 pandemic.

The headline figure was dragged by a further slump in pork prices, down 30.1, speeding up from a 22 slide in September, amid an oversupply of pigs and weak demand.

However, even core inflation, which excludes food and fuel prices, slowed to 0.6 in October from 0.8 in September, pointing to China39;s continued battle with disinflationary forces and the risk of again missing the government39;s fullyear headline inflation target, set at around 3.

Consumer prices slipped into deflation in July and returned to positive territory in August but were flat in September. Factory deflation persisted for the 13th straight month in October.

Combined with other economic indicators, the data in the fourthquarter so far suggests a meaningful recovery in the…