Chinese inflation edges up.

Chinese shares increased 0.2% following a weekend data dump which showed that inflation rose to an eight-month high of 3.2% on year in October from 3.1% in September, driven up by higher food prices. However, the producer price index dropped for the 20th month in a row, suggesting that deflationary forces remain an issue. The growth in industrial production accelerated to 10.3% from 10.2%, while retail sales again climbed 13.3%. The data comes as Chinese leaders meet to discuss major economic reforms.