Core Insights - In September, the Consumer Price Index (CPI) decreased by 0.3% year-on-year, with the decline narrowing by 0.1 percentage points compared to August. The core CPI, excluding food and energy, rose by 1.0%, marking the fifth consecutive month of growth [1][2] - The Producer Price Index (PPI) fell by 2.3% year-on-year, with the decline narrowing by 0.6 percentage points from August [1][2] CPI Analysis - The slight narrowing of the CPI decline in September is attributed to effective consumption promotion policies, with increased prices for home appliances and mobile phones contributing positively. Additionally, a significant rise in international gold prices also played a role [2] - Food prices decreased by 4.4%, impacting the CPI by approximately 0.83 percentage points, while energy prices fell by 2.7%, contributing about 0.20 percentage points to the CPI decline [2] - The "tail effect" was noted as a significant factor in the CPI's year-on-year change, with a negative impact of about 0.8 percentage points from previous price changes [2] PPI Analysis - The narrowing of the PPI decline is influenced by a lower comparison base from the previous year and the positive effects of macroeconomic policies. Certain industries, such as coal processing and metal smelting, showed reduced price declines compared to August [4] - Prices in several sectors, including aircraft manufacturing and electronic materials, experienced year-on-year increases, indicating a recovery in some industrial prices [4] Future Outlook - The release of consumer service potential is expected to support a stable core CPI, with a gradual recovery anticipated in the CPI year-on-year [3] - The PPI is expected to stabilize as capacity governance continues in key industries, improving supply-demand structures [5] - The monetary policy is likely to maintain a moderately loose stance to support consumption and innovation, while addressing the weak internal growth dynamics [5]