China's producer prices rise further in October; consumer inflation weakens

China's producer prices rose further in October while consumer inflation weakened, reflecting weak domestic demand even as higher oil prices create cost pressures.

Data released by China's National Bureau of Statistics on Monday showed the producer price index rose 5.7 percent year on year in October, up from 5.0 percent in September. Economists had expected a 5.3 percent rise, so the figure beat forecasts.

Consumer inflation, measured by the consumer price index (CPI), was just 0.7 percent year on year, down from 0.9 percent in September and below the 0.8 percent economists expected. On a monthly basis the CPI was unchanged, in line with expectations; it had risen 0.2 percent in September.

Although production costs have risen against a background of higher global oil prices, weak consumer demand keeps raising questions about China's economic recovery, economic observers say.