UPDATE 1-China's factory-gate deflation eases in October, consumer prices rise

China's producer price deflation eased in October and consumer prices returned to positive territory, data showed on Sunday, as the government steps up efforts to curb overcapacity and cut-throat competition among firms.

The producer price index fell 2.1% in October from a year earlier, National Bureau of Statistics data showed, compared with an expected 2.2% decline in a Reuters poll of economists. The index has remained negative since October 2022 and dropped 2.3% in September. Consumer prices edged up 0.2% from a year earlier, reversing a two-month decline and beating the estimate for no change.

The October price figures indicate that government efforts to rein in excessive competition have helped stabilise prices, but lukewarm domestic demand and geopolitical tensions continue to clo