The consumer price index (CPI) rose 0.4% year-on-year in September, as bad weather pushed up food prices ahead of the Golden Week holiday. That was below the consensus estimate of 0.6%, which would have matched the rate of price growth in August.
China's economic headwinds include slowing growth threatening wage stagnation and layoffs, historically high youth unemployment, and a burst property bubble affecting home values and local government budgets.
Even with these economic challenges, Goldman Sachs has raised its GDP growth forecast for China from 4.7% to 4.9% this year, citing the government's planned stimulus package as a revitalizing factor.
China's leader, Xi Jinping, may be cautious about overstimulating the economy, as aggressive government interventions could lead to negative consequences, balancing stimulus with long-term stability concerns.
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