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ASIA

Coming up in the Asia-Pac session on Tuesday:

MNI

Coming up in the Asia-Pac session on Tuesday:

US OUTLOOK/OPINION

GS: Payrolls Doesn't Change Faster Taper & First Hike In June Call

USDCAD TECHS

Bull Theme Remains Intact

US TSYS

Strong Stocks, Rebound for Oil Weighs on Tsys

EURJPY TECHS

Trend Signals Still Point South

MNI (Sydney)

China's July inflation rebounded to 2.7% y/y from 2.5% in June, hitting a three-month high as tight supplies of pork and vegetables pushed up food prices. Analysts had expected 2.6% y/y.

Factory-gate prices narrowed year-on-year falls to register a four-month high as the prices of oil-related products kept rising on rebounding crude oil prices.

Here are the key takeaways from data released by the National Bureau of Statistics on Monday:

  • Food costs accelerated to 13.2% y/y from 11.1% in June, accounting for 2.68 percentage points of the CPI gain.
  • On a monthly basis, the CPI rose 0.6%, reversing the four-straight-month decline, compared with the 0.1% decline over the previous month.
  • Pork prices, the main inflation driver in the past year, rose 10.3% m/m, further extending the 3.6% gain in June, as floods in many places disrupted the transportation of hogs amid increased pork demand by restaurants.
  • Vegetable prices also rose above trend due to hot and rainy weather, growing 6.3% m/m in July, compared with June's 2.8% gain.
  • The PPI was -2.4% y/y, narrowing the 3.0% fall in June. The figure was better than the forecast of -2.5%.
  • The PPI grew 0.4% m/m, keeping the same pace as in the June-May period, as international commodity prices continued to pick up and market demand gradually improved.
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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