The data released today regarding the Chinese consumer inflation revealed slump more than forecasted in October, as lockdown procedures has been re-imposed due to the resurface of Covid-19 cases, that brought an opposite wind to the economy.

CPI climbed 2.1% at an annualized rate in October below the expectations of 2.4% and September’s data of 2.8%. On monthly basis, there was 0.1% CPI inflation raise lower than expectations of 0.3%. While factory gate inflation slipped 1.3% beyond predictions for a slump of 1.5%.

China is currently encountering low price tensions as the sequence of lockdowns to combat the Covid-19 spread hindered the economic activity this year where factory gate inflation ached the most as Covid-19 measures are behind the short-term closure of many manufacturing hubs.

China is facing the hardest phase of Covid-19 spread since May, as we now witness restrains pressed back in many significant hubs, encompassing Shanghai.

In spite of the slowed economy triggered by the Covid lockdowns, the government did not give any signs yet that they are intending to loosen the measures any time soon.

The property distress affected the economic activity in China this year, as contractors experienced cash shortage and hung most construction works, which raised consumers concerns towards mortgages or purchasing houses.