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China’s producer prices declined 2.1% yoy in October 2025, slowing slightly from a 2.3% drop in the previous month and marking the softest decrease since August 2024, though extending their contraction for the 37th consecutive month. The result came in slightly better than market expectations of a 2.2% fall, reflecting Beijing’s ongoing efforts to curb deflationary pressures and stabilize industrial margins amid price competition. Consumer goods prices fell at a slower pace (-1.4% vs -1.7% in September), with continued drops in food (-1.6% vs -1.7%), clothing (-0.3% vs -0.3%), and durable goods (-3.2% vs -3.9%), while costs of daily-use goods quickened (1.0% vs 0.7%). Meantime, production material prices remained weak (-2.4% vs -2.4%), with persistent drops in mining (-7.8% vs -9.0%), raw materials (-2.5% vs -2.9%), and processing (-1.9% vs -1.7%). During the first ten months of the year, producer prices were down 2.7%. Monthly, the PPI inched up 0.1% after being flat in September.