China's October PPI drops 2.8 pct

China's producer price index, which measures inflation at the wholesale level, dropped 2.8 percent year on year in October, compared with a 3.6-percent decline in September, the National Bureau of Statistics said on Friday.

But the decrease rate of the PPI inched up 0.2 percent in October on a month-on-month basis, according to the NBS.

This marks the eighth straight month of year-on-year decline, as China's PPI dropped for the first time in March this year since December 2009.

The PPI figures show that the economy is rebounding slightly but still at a low level, and the real economy is not optimistic, said Li Chang'an, an associate professor with University of International Business and Economics.

Meanwhile, the country's consumer price index (CPI), a key gauge of inflation, grew 1.7 percent in October year on year.