中国通胀系列七：价格修复路漫漫，关注内外价差分化

Inflation Data - In October, the Consumer Price Index (CPI) decreased by 0.3% month-on-month and increased by 0.3% year-on-year, down from 0.4% in September[1] - The Core CPI, excluding food and energy, remained flat month-on-month and increased by 0.2% year-on-year, up from 0.1% in September[1] - The Producer Price Index (PPI) decreased by 0.1% month-on-month and fell by 2.9% year-on-year, compared to a 2.8% decline in September[1] Price Trends - The CPI and PPI gap stabilized at 3.2% in October, indicating ongoing pressure on nominal prices[3] - Food prices saw a significant year-on-year increase of 2.9%, with fresh vegetables rising by 21.6% and pork prices increasing by 14.2%[23] - Non-food prices decreased by 0.3% year-on-year, with energy prices dropping by 5.1%[30] Policy Implications - The implementation of fiscal policies, including a 6 trillion yuan increase in local government debt limits, is expected to alleviate price pressures and support demand[3] - The PPI and PPIRM gap rose by 0.4 percentage points to -0.2%, indicating a mixed outlook for raw material prices[3] Future Considerations - Attention is needed on external interest rate cuts and trade pressures, which may affect internal policy expansion and the renminbi's depreciation pressure[4] - The ongoing impact of fiscal policies on domestic circulation goods is crucial for future price stability[4]