BEIJING, Nov. 8 (UPI) -- China Friday reported inflation in October eased to 1.7 percent year-on-year from 1.9 percent in September as the pace of food price increases further slowed.
The National Bureau of Statistics said the October growth in the consumer price index, China's main gauge of inflation, also came in below market forecast of 1.8 percent, Xinhua News Agency reported. The August inflation rate was 2 percent.
Food prices, which account for one-third of the CPI index, rose 1.8 percent in October year-on-year, down from September's 2.5 percent.
The October number may further encourage officials to ease monetary policy and take additional steps to spur the slowing economy, which has been affected by slowing demand for China's exports. The government wants to keep inflation below 4 percent for the whole year.
China is the world's second-largest economy after the United States. Japan occupies the third place.