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China Inflation Due Today

CHINA

Consumer prices are expected to rise 0.8% in September, in line with the August print, while producer prices are expected to accelerate to 10.5% from 9.5% previously.

  • JPM says: "The August inflation report shows further modest easing in CPI inflation rate, as headline CPI rose 0.8%oya (or fell 0.1% m/m sa terms). The breakdown of headline CPI shows further pork price decline (-1.4%m/m nsa), along with easing energy prices (vehicle fuel prices fell 1.3% m/m nsa), while core CPI rose modestly by 0.1% m/m sa, as recent virus clusters restrained near term consumer spending and hence consumer goods prices. We expect CPI inflation to turn up moderately in September, with headline CPI rising 1.1%oya (+0.1% m/m sa). Regarding food prices, early indicators suggest agricultural product prices fell 0.3% m/m nsa in September (or fell 7.2%oya)."

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