The official data released by the National Bureau of Statistics shows that the consumer price index (CPI) rose 1.6% in September from a year earlier, against forecast of a 1.8% rise, the producer price index (PPI) fell 5.9% in line with expectations, clocked its 43rd straight month of declines.

Anbound's scholars point out that the price data in September signalling the increased risk of deflation means that there is room for further monetary easing policy.

There might be another round of measures to cut both the reserve requirement ratio and benchmark interest rate in the fourth quarter.