China’s consumer prices fell in October due to weak domestic demand indicators and increased factory-gate deflation, raising uncertainty on a broad economic recovery.

The consumer price index (CPI) fell 0.2% from a year earlier and 0.1% from September, with pork prices down 30.1%. Core inflation fell to 0.6% in October, indicating China’s ongoing fight against deflation and the risk of missing the government’s full-year headline inflation target of 3%.

The fourth-quarter numbers and other economic indicators suggest a slow recovery in the world’s second-largest economy.

Authorities have frequently minimized risks, but a property crisis, local debt issues, and Western policy divergence hinder recovery.

Moody’s expects China’s economy to grow by 5.0% in 2023, followed by 4.0% growth in 2024 and 2025.