China's Oct PPI drops 2.8%

BEIJING - China's producer price index, which measures inflation at the wholesale level, dropped 2.8 percent year-on-year in October, compared with a 3.6-percent decline in September, the National Bureau of Statistics said on Friday.

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This marks the eighth straight month of year-on-year decline, as China's PPI dropped for the first time in March this year since December 2009.

But the PPI inched up 0.2 percent in October on a month-on-month basis, according to the NBS.

The changes in the PPI are positive and related to recovering domestic need and the stabilizing Chinese economy, said Zhang Liqun, an analyst with the Development Research Center of the State Council.

The PPI figures show that the economy is rebounding slightly but still at a low level, and the real economy is not optimistic, said Li Chang'an, an associate professor with University of International Business and Economics.

Meanwhile, the country's consumer price index (CPI), a key gauge of inflation, grew 1.7 percent in October year on year.