Free Trial

Crude Buoyed By Supply Concerns Plus Late Dollar Boost


FED Reverse Repo Operation


Fed Path Unwinds Initial Dip Lower On Powell


Retreats From Resistance

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Inflation Data Continues To Argue For Easier Financial Conditions


China headline inflation printed slightly below expectations, 2.8% y/y, versus 2.9% expected. It was still firmer than last month (2.5% y/y in August). Outside of food price momentum was soft though. Food inflation rose 8.8% y/y, (6.1% prior), while non-food was up just 1.5% (1.7% prior). A core inflation measure (ex food and energy) was up just 0.6% y/y, the softest pace since March 2021. The chart below overlays this measure against the 2yr government bond yield.

  • Only 2 sub categories recorded y/y rises (food and household items, albeit just for this latter category (1.4% versus 1.3% last month). The 6 other sub categories were either down or the same in y/y terms as last month.

Fig 1: China Core CPI & 2yr Government Bond Yields

Source: MNI - Market News/Bloomberg

  • For the PPI, it fell by -0.1% m/m, bringing the y/y pace sub 1% (0.9%), which was slightly weaker than expected. The chart below overlays the headline PPI y/y (pushed forward by 6 months) against the CNY NEER y/y (sourced from J.P. Morgan).
  • Waning PPI momentum continues to point to less need for elevated NEER levels.
  • The PPI decline was led by further down shifts in mining and raw materials upstream price pressures, although manufacturing, -1.9% y/y, and durable goods -0.6% y/y, were other soft points.

Fig 2: J.P. Morgan CNY NEER Y/Y Versus Headline PPI Y/Y

Source: J.P. Morgan/MNI - Market News/Bloomberg

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.