China´s domestic price inflation escalated in October, as the CPI rose 6.5 percent from the previous year, which was up from 6.2 percent in September and matched August CPI growth of 6.5 percent. Again, the price increase was not universal, but heavily concentrated in food. In October, prices increased 55 percent in pork, 30 percent in vegetables and 34 percent in edible oil, while non-food prices only grew 1.1 percent.

As to China´s apparel manufacturers, they are still battling for a portion of the booming domestic market by remaining aggressive in pricing. The average October retail price of apparel declined 1.3 percent from a year ago, which was the most significant monthly price reduction since March 2006. Apparel retail prices briefly stabilized during the November 2006 through April 2007 period, before declining under renewed pressure.

Source:globecotnews