October CPI up 0.3 yy vs Sept 0.4
PPI down 2.9 yy vs Sept 2.8
China unveiled 1.4 trln local debt resolution plan
Strain on property, household consumption still key challenges

BEIJING, Nov 9 Reuters China39;s consumer prices rose at the slowest pace in four months in October while producer price deflation deepened, data showed on Saturday, even as Beijing doubled down on stimulus to support the sputtering economy.

In its latest stimulus measures, the country39;s top legislative body approved a 10 trillion yuan 1.4 trillion package on Friday to ease local government hidden debt burdens, rather than directly injecting money into the world39;s secondbiggest economy, as some investors had hoped.

Analysts say the package will likely do little to boost economic activity, demand and prices in the near term.

The consumer price index CPI rose 0.3 from a year earlier last month, slowing from September39;s 0.4 rise and marking the lowest since June, data from the National Bureau of Statistics showed, short of the 0.4 increase forecast in a Reuters poll of economists.

However, core inflation, excluding volatile food and fuel prices, rose 0.2 in October, accelerating from 0.1 in September.

Due to the Golden Week holiday in October, the effect of stimulus policies on promoting domestic demand issued since late September is not obvious yet, said Bruce Pang, chief economist at JLL.

He expected CPI to maintain an upward trend while core inflation remains mild, opening up…