China’s Deflationary Pressures Build in September, Consumer Inflation Cools

China’s consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity.

Data from the National Bureau of Statistics (NBS) showed on Sunday that the consumer price index (CPI) rose 0.4% from a year earlier last month, the slowest in three months, against a 0.6% rise in August, missing a 0.6% increase forecast in a Reuters poll of economists.

Reuters reports that the producer price index (PPI) fell at the fastest pace in six months, down 2.8% year-on-year in September, versus a 1.8% decline the previous month and below an expected 2.5% decline.

Chinese authorities have stepped up stimulus efforts in recent weeks to spur demand and help meet an around 5.0% economic growth target for this year, though some analysts say the moves may only offer temporary relief and stronger measures are needed soon or the weakness could extend well into next year.