Consumer price inflation eased to an 18-month low in October, giving room for the government to introduce further interest rate cuts to boost the economy.

The consumer price index rose 4 percent year-on-year in the past month, declining for the sixth consecutive month, according to the National Bureau of Statistics.

"Consumer prices are now on the downward track," said Chen Jianqi, an economist with Bank of Communications. "Price growth may turn negative in January and we may even have to deal with deflation."