BEIJING, Oct 15 (Reuters) - China's consumer prices fell

in September while producer deflation persisted, as prolonged

domestic weakness and renewed trade tensions weighed on consumer

and business confidence.

The consumer price index (CPI) dipped 0.3% last month from a

year earlier, National Bureau of Statistics data showed on

Wednesday, versus a 0.2% fall in a Reuters poll of economists.

It had dropped 0.4% in August.

On a monthly basis, CPI was up 0.1%, versus no change in

August, and below a forecast 0.2% increase.

Producer prices (PPI) fell 2.3% year-on-year in September

compared with a 2.9% fall in August, in line with economists'

expectations.