Core Insights - The inflation data for October released by the National Bureau of Statistics indicates positive signals for the economy, with the Consumer Price Index (CPI) rising 0.2% month-on-month and year-on-year, while the core CPI excluding food and energy prices increased by 1.2%, marking the sixth consecutive month of growth [1][4] CPI Analysis - The CPI turned from a decline of 0.3% in the previous month to an increase of 0.2% in October, with food prices decreasing by 2.9%, but the decline narrowed by 1.5 percentage points compared to the previous month [3] - The core CPI's continuous rise suggests a robust recovery in domestic consumption demand, particularly in service consumption, indicating a strengthening of the overall price foundation [4] PPI Analysis - The Producer Price Index (PPI) saw a month-on-month increase of 0.1%, marking its first rise of the year, while the year-on-year decline was 2.1%, with the decline narrowing by 0.2 percentage points for the third consecutive month [1][6] - Key industries are experiencing a reduction in price declines due to ongoing capacity governance and the release of consumption potential, with specific sectors like coal mining and manufacturing showing improved price stability [6] Future Outlook - Looking ahead, the CPI is expected to steadily rise, and PPI deflation pressures are likely to ease, supported by macro policies, restored market confidence, and expanded domestic demand [7]

Group 1 - The CPI in October turned from a decrease of 0.3% in the previous month to an increase of 0.2%, indicating a positive shift in consumer prices [4] - Food prices decreased by 2.9%, but the decline narrowed by 1.5 percentage points compared to the previous month, impacting the CPI by approximately 0.54 percentage points [4] - The core CPI, excluding food and energy, rose by 1.2%, marking the highest increase since March 2024 and indicating a steady recovery in domestic consumption demand, particularly in service consumption [5] Group 2 - The PPI decreased by 2.1% year-on-year, but the decline narrowed by 0.2 percentage points for the third consecutive month, reflecting improvements in supply-demand relationships in key industries [7] - Prices in the photovoltaic equipment, battery manufacturing, and automotive manufacturing sectors saw a reduction in their decline by 1.4, 1.3, and 0.7 percentage points respectively, indicating a stabilization in these industries [7] - The manufacturing sector is experiencing a positive trend with price increases in various categories, such as 18.4% in arts and crafts, 3.3% in sports balls, and 2.1% in nutritional food manufacturing, driven by effective consumption-boosting policies [7] Group 3 - The overall economic vitality is steadily increasing, with domestic demand potential being released, as indicated by the positive inflation data [2] - The improvement in price data is comprehensive and solid, surpassing seasonal levels, reflecting a smoother economic internal circulation and enhanced growth quality [5] - Future inflation trends are expected to show a gradual recovery in CPI and alleviation of PPI deflationary pressures, contributing to a moderate upward shift in overall price levels [8]