FXStreet reports that UOB Group’s Economist Ho Woei Chen, CFA, assessed the latest inflation figures in the Chinese economy.

“China’s headline inflation eased sharply to 11-year low in October as food prices came off further. However, the core inflation has remained steady while services inflation edged higher, supporting a more positive outlook as demand recovers. With a high base of comparison, the headline inflation will remain subdued in 4Q20 and we now expect full-year 2020 inflation at 2.6% vs. 3.0% previously. We maintain our outlook for inflation to pick up to 3.0% in 2021 on stronger global economic recovery next year.”