Deflation pressures in China eased in October as consumer prices returned to growth after remaining in negative territory for the most part this year, supported by holiday season demand, while declines in wholesale prices also moderated.

Data from China's National Bureau of Statistics released Sunday showed consumer price index reading for October at 0.2% , compared with analysts' expectations of zero, or flat growth year on year. October's reading was the strongest since January this year, and the first positive growth in consumer prices since June.

On a month-on-month basis CPI also rose by 0.2%, compared with Reuters-polled analysts' expectations of zero growth.

Food prices, which have been a drag on the country's CPI, dropped 2.9% year on year. However, prices rose 0.2% over the p

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