Core Viewpoint - The article highlights the improvement in October's inflation data, with CPI turning positive at 0.2% and core CPI rising to 1.2%, indicating better-than-expected economic conditions [2][8][16]. Summary by Sections 1. Inflation Data Overview - October's CPI increased to 0.2% year-on-year, surpassing the expected -0.1%, while core CPI rose to 1.2%, the highest since 2022 [2][8]. - PPI narrowed its year-on-year decline from -2.3% to -2.1%, also better than expected [2][8]. 2. Factors Behind CPI Improvement - The rise in CPI is attributed to better-than-expected food prices and a significant increase in gold prices, with food prices rising 0.3% against an expected decline of 0.4% [4][9]. - Gold jewelry prices surged by 10.2%, contributing approximately 0.06 percentage points to CPI [4][9]. 3. PPI Analysis - PPI saw a month-on-month increase of 0.1%, marking the first rise this year, driven by improved supply-demand dynamics in certain industries such as coal and photovoltaic [3][27]. - Input factors, particularly international oil prices, influenced domestic prices, with oil-related sectors experiencing declines while non-ferrous metals saw price increases [10][28]. 4. Implications of the Data - The unexpected improvement in CPI and PPI is expected to elevate next year's tail effects, potentially aiding further recovery in year-on-year readings [13][15]. - Continuous policy support is necessary for sustained CPI improvement, including measures to stimulate consumption and stabilize housing prices [15][16]. 5. Price Change Distribution - The proportion of CPI items experiencing price increases decreased from 38% to 29%, the lowest since 2016, while the year-on-year increase in PPI price-raising industries rose from 6 to 9 [33][34]. - The proportion of production materials experiencing price increases also rose from 30% to 40%, indicating a recovery in various sectors [40].