China's Consumer Prices Drop in October, But Deflationary Spiral Unlikely

China's consumer prices fell by 0.2% in October, mainly due to food-price deflation, while factory-gate prices contracted further. Analysts argue that China is not trapped in a deflationary spiral but call for further policy support to mitigate downward risks. The decline in core inflation and signs of renewed economic weakness indicate vulnerability to negative shocks, but expectations of upcoming data suggest a firming trend. Analysts do not anticipate a deflationary spiral, projecting that inflation will remain low but rise gradually in the coming months.