China's headline consumer price index rose 0.3 percent on the year in October, easing from the 0.4 increase recorded in September. The index fell 0.3 percent on the month after no change previously. Producer price inflation data also published today showed ongoing weakness in price pressures.

China's inflation remains muted just above zero, reflecting weak consumption and heavily indebted local governments that are still reeling under the weight of the country's property market crash. The consumer inflation annual rate is forecast at 0.5% in October, little changed from 0.4% in September. which was an eighth straight month of price gains but the lowest since 0.2% in June.

Consumer Price Index (CPI) is an index that measures changes over time in the price level of consumer goods and services purchased by residents, which reflects the overall changes in price level.

Consumer prices account for a majority of overall inflation, which is carefully monitored by investors worldwide. Investors worldwide monitor Chinese price changes closely. A pickup in inflation could mean an increase in interest rates is in the offing from the People's Bank of China while an easing could mean looser monetary policy. The monthly CPI is broken down by 8 categories with more detail available on the following day including aggregate information by urban and rural areas and provinces.

The CPI measures the change in the level of prices for a specified basket of goods and services normally purchased by urban and rural residents. Approximately 226 areas throughout the country are covered, including 80 counties and 146 cities. The current CPI is an annually chained Laspeyres price index and has been available since 2001. From 1978 to 2000, the index was compiled using current year weights for most items.