China’s CPI inflation fell to 0.7% year-on-year, down from 0.9% and slightly below expectations (market: 0.8%, ING: 0.8%). This brings the year-to-date inflation to 0.9% YoY.     Food was the main drag on inflation, with prices falling to a 13-month low of -2.9% YoY. The main culprits were fresh vegetables (-16.9%), pork (-8.6%), and fresh fruit (-3.8%) prices. The drag from pork prices has eased in recent months, but a sharp sequential decline in vegetable prices has largely offset it.     By comparison, non-food inflation was unchanged at 1.5% YoY on the month. We continue to see a strong boost from transportation fuels (20.2%) amid higher oil prices, and communication appliances (16.1%) due to more expensive tech components. Other categories such as healthcare (2.4%), Education, Culture, and Entertainment (1.5%), and clothing (1.1%) generally saw modest positive inflation.        Cutting through the noise, core inflation of 0.8% YoY edged down to a 9-month low, but it has stayed within a relatively narrow range of 0.8-1.2% year to date.    PPI inflation rose to 5.7% YoY in October, extending its climb to fresh cycle highs, as we saw an outsized boost from mining and excavation (27.9%) and raw material (11.6%) prices. By industry, coal mining (36.6%) and oil and gas extraction (35.0%) saw the biggest boosts. If higher producer prices hold, these costs should be passed on to consumers. We think inflation will remain low but positive heading into 2027.