Recent monthly CPI readings have kept China's 2026 inflation trajectory subdued, with the first nine months averaging 0.9% year-on-year and October printing at 0.2% amid persistent weak domestic demand and declining food prices. Producer prices have risen more sharply due to energy and raw material costs, yet limited pass-through to consumers has sustained the gap between upstream and downstream inflation. Policy measures aimed at expanding domestic consumption and supporting growth have yet to generate stronger price momentum, reinforcing trader consensus around the 0.6-1.0% annual range as the most probable full-year outcome.