MNI BRIEF: China Sep CPI Slows To 0.4% Y/Y On Base Effects
China's Consumer Price Index rose 0.4% y/y in September, decelerating from August's 0.6% and underperforming the 0.6% consensus, driven by the higher comparison base for the same period last year, data from the National Bureau of Statistics showed Sunday.
Food prices rose 3.3% y/y led by a 22.9% and 16.2% increase in vegetable and pork prices due to holiday factors, driving up CPI by 0.61 percentage points. Non-food prices fell 0.2%, driving down the headline figure by 0.19 pp. On a monthly basis, CPI rose 0.0%, moderating from August's 0.4%.
PPI declined 2.8% y/y, expanding from last month’s 1.8% fall to hit a six-month low and marking the 24th consecutive negative reading, missing the market consensus of a 2.6% fall. PPI fell 0.6% m/m, narrowing from August’s 0.7% drop, driven by weak domestic demand and fluctuations in international commodity prices, the NBS said.