Consumer prices in China rose in October continuing a three-year

• Producer prices fell 2.1% compared to a year earlier, continuing a three-year decline.

• China's exports unexpectedly declined in October, with exports to the US falling 25%.

• Manufacturing activity declined more than expected last month.

• Deflationary pressures eased in China in October, after remaining in negative territory for most of this year, supported by festive season demand, while wholesale prices also eased their decline.

• According to data released by China's National Bureau of Statistics on Sunday, the Consumer Price Index rose 0.2% in October, while analysts had expected zero or stable growth compared to a year earlier. The October figure was the strongest since January this year and the first positive increase in consumer prices since June.

• On a month-on-month basis, the Consumer Price Index (CPI) also rose 0.2%, while analysts polled by Reuters had expected zero growth.

• Food prices, which have been a major drag on the country's CPI, fell 2.9% year-on-year. However, prices rose 0.2% compared to the previous month.

• Factory-gate deflation eased, and prices fell 2.1% year-on-year, while Reuters poll estimates were for a 2.2% decline, ending three years in negative territory. Producer prices rose 0.1% month-on-month in October.

• "In October, policies aimed at boosting domestic demand continued to have an impact, with the National Day and Mid-Autumn Festival holidays also contributing to the positive sentiment," Dong Lijuan, chief statistician of the National Bureau of Statistics' urban division, said in a statement.

• Although China's measures to curb price wars and boost demand are proving fruitful, with the country's industrial profits rising more than 21% in September, experts warn that unless meaningful tax changes are made, Chinese local governments' continued reliance on tax revenue is fueling production, fueling competition and overproduction.

• According to an official survey released on October 30, China's manufacturing activity fell more than expected in October, reaching its lowest level in six months. Sub-indices for output, new orders, raw material inventories, and employment also declined, indicating a sharp slowdown in the manufacturing sector.

• Chinese producers are grappling with demand uncertainty this year due to trade tensions with the US and declining consumer confidence domestically, while Beijing is grappling with a prolonged housing slowdown and unfavorable export conditions.

• According to customs data released on Thursday, the country's exports unexpectedly fell in October, with exports to the US recording a double-digit decline for the seventh consecutive month, down 25%.

• Going forward, export barriers may ease as US President Donald Trump and his Chinese counterpart Xi Jinping agreed on a trade truce during their meeting in South Korea on October 30, defusing a potentially inflammatory situation that had sparked concerns of a full-blown trade war.

• Last month, China's leadership pledged to boost domestic consumption by laying out an economic roadmap for the next five years. According to translations, the meeting minutes stated that China should "rapidly increase consumption."

• The leaders discussed in detail the need to boost consumption, balancing it with “effective investment” and “remaining committed to the strategic goal of boosting domestic demand”.