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China CPI, PPI Rise More Than Expected In August

     BEIJING (MNI) - Data released Saturday by the National Bureau of Statistics
on China's Consumer Price Index (CPI) and Producer Price Index (PPI):
                         CPI           PPI
------------------------------------------
August                   1.8           6.3
Forecast Median          1.7           5.7
Previous                 1.4           5.5
     All figures year-over-year % change unless otherwise indicated
     FACTORS:
                             Aug          Jul
---------------------------------------------
CPI m/m                     +0.4         +0.1
Food price y/y              -0.2         -1.1
Non-food price y/y          +2.3         +2.0
PPI m/m                     +0.9         +0.2
     CONSUMER PRICE INDEX
     China's Consumer Price Index accelerated to 1.8% year-on-year in August
from 1.4% in July. The August rise was stringer than expected, with the MNI
survey median projecting a 1.7% rate. The August rate was the highest since
January's 2.5%. 
     Food prices fell 0.2% y/y in August, the seventh decline in a row, but a
much smaller decline that the 1.1% y/y drop in July. 
     Non-food prices rose 2.3% year-on-year in August, accelerating from the
2.0% rate posted in July. 
     The CPI rose 0.4% m/m last month after a 0.1% drop in July. CPI has risen
m/m for two consecutive months, with the August rate the highest since 1.0% in
January.  The m/m rate had decline four of the previous six months.  
     PRODUCER PRICE INDEX
     China's Producer Price Index accelerated sharply to 6.3% year-on-year in
August from the 5.5% rate in July. Like CPI, the PPI increase was stronger than
expected, with MNI survey median forecasting a 5.7% rate. August marks the
twelfth consecutive month that the PPI rate has been positive since it exited
negative territory in September 2016.  The August PPI rate was the highest since
April's 6.4%, after stabilizing at 5.5% each of the previous three months.  
     On a month-over-month basis, the PPI jumped 0.9% in August compared to the
0.2% gain the month before. August PPI rose m/m for the second consecutive
month, at the highest rate since December's 1.6%. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
[TOPICS: MAQDS$,M$A$$$,M$Q$$$,MT$$$$]

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