China’s consumer prices fell by 0.2% in October, indicating an uneven post-Covid recovery in the country. This decline was larger than expected and follows a flat CPI in September. Producer prices also declined, showing factory deflationary pressures remained for the 13th consecutive month. The ongoing debt crisis in China’s real estate sector, which makes up about 30% of the economy, is further hurting consumer confidence. However, analysts believe that domestic demand may improve next year with rising budget deficit and potential government support for property developers. The strength of Chinese consumption will be gauged through the Singles Day shopping festival.