China's September consumer prices flat, factory deflation persists

China's consumer prices were flat in September, while factory-gate prices shrank at slower pace, official data showed on Friday, indicating deflationary pressures persist in the economy.

The consumer price index (CPI) was unchanged in September from a year earlier, data from the National Bureau of Statistics showed, missing the forecast for a 0.2 per cent gain in a Reuters poll. CPI rose 0.1 per cent in August.

The producer price index (PPI) fell 2.5 per cent from a year earlier, the narrowest decline since March. Economists had predicted a 2.4 per cent fall for September.

Signs are emerging that the world's second-largest economy is stabilising, but concerns over the strength of recovery momentum remain.