MNI DATA IMPACT: China July PPI Fell To 3-Year Low

     BEIJING (MNI) - China's CPI rose to 2.8% y/y from June's 2.7%, hitting a

17-month high. The result beat an MNI survey of economists, which projected the

headline number to come in unchanged at 2.7%.

     Here are other points of note from the data released by the National Bureau

of Statistics on Friday:

     --The y/y CPI gain was mainly due to higher food prices which rose 9.1%

y/y. Fresh fruit prices grew 39.1%, lower than June's 42.7% gain mainly due to

increased seasonal supply. The price of pork continued to accelerate by 27% y/y,

from June's 21.1% gain. These two categories have driven up the headline CPI by

1.22 percentage points.

     --CPI growth increased 0.4% on a monthly basis, compared with June's -0.1%

fall. Food prices rose 0.9% m/m, reversing the 0.3% decline in June. The price

of pork rose 7.8% m/m due to the tight supply impacted by the African swine

fever, which has dragged up the CPI by 0.2 pp, the NBS said.

     - PPI fell 0.3% y/y, down from June's 0.0%, hitting the lowest level since

August 2016. The figure missed the -0.1% forecast by an MNI survey. The PPI fell

0.2% on a monthly basis, compared with a 0.3% m/m decline in June.

     - Ex-factory prices of oil and gas exploration, as well as oil, coal and

other fuel processing and chemical product manufacturing fell further by 8.3%,

5.1% and 4% y/y, respectively, expanding from June's declines by 6.5, 3.2 and

0.2 pp.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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