BEIJING, Oct 15 (Reuters) - China's factory gate prices in September fell 1.2% from a year earlier, data from the National Bureau of Statistics showed on Tuesday, marking the third straight month of contraction as the economy was buffeted by slowing demand and a trade war.

It was the steepest year-on-year contraction since July 2016, when it fell 1.7%, and in line with expectations of analysts polled by Reuters.

The producer price index (PPI), a key barometer of corporate profitability, fell 0.8% in year-on-year terms in August.

The consumer price index (CPI) in September rose 3% from a year earlier, compared with a rise of 2.9% tipped by a Reuters survey of analysts and a 2.8% increase seen in August. (Reporting by Gabriel Crossley and Yawen Chen; Editing by Sam Holmes)