Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA DATA
China October inflation data was close to expectations. Headline CPI fell to -0.2% y/y, versus -0.1% forecast and flat prior. The PPI was -2.6% y/y, versus -2.7% forecast and -2.5% prior.
- Recall that the recent PMI prints suggested reduced price pressures in October, so this result is consistent with that. M/M CPI fell -0.1%, versus a 0.2% rise last month. Core CPI slipped back to 0.6% y/y (from 0.8% prior), but remains within 2023 ranges.
- In terms of the detail, food was a big drag, down -4.0%, while non-food was steady at 0.7%. Elsewhere, most sub-categories saw inflation at similar to September levels.
- Outside of the food result, today's data is not suggesting a sharp slowdown in inflation pressure but equally we remain at depressed levels in terms of core CPI trends, so that shouldn't stop any further easing steps by the authorities.
- On the PPI side, the detail was a little softer. The drag from the mining and raw materials side softened.
- However, consumer goods were weaker, down -0.9% y/y, from -0.3%, led durables at -2.0% (prior -1.2%).
Fig 1: China CPI and PPI Y/Y
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok