REPEAT:China CPI As Expected on Food; PPI Jumps Above Expected

Repeats Story Initially Transmitted at 02:03 GMT Oct 16/22:03 EST Oct 15

     BEIJING (MNI) - Data released Monday by the National Bureau of Statistics

on China's Consumer Price Index (CPI) and Producer Price Index (PPI):

                         CPI           PPI

------------------------------------------

September                1.6           6.9

Forecast Median          1.6           6.3

Previous                 1.8           6.3

     All figures year-over-year % change unless otherwise indicated

     FACTORS:

                             Sep          Aug

---------------------------------------------

CPI m/m                     +0.5         +0.4

Food price y/y              -1.4         -0.2

Non-food price y/y          +2.4         +2.3

PPI m/m                     +1.0         +0.9

     CONSUMER PRICE INDEX

     China's Consumer Price Index rose 1.6% year-on-year in September,

decelerating from the 1.8% gain in August, in line with the MNI survey median

forecast for a 1.6% rise.

     Food prices fell 1.4% y/y in September, the eighth decline in a row and the

largest decline since May (-1.6%). The September drop was much sharper than the

0.2% y/y drop in August. 

     Non-food prices rose 2.4% year-on-year in September, the highest rate since

April (also 2.4%), accelerating slightly from the 2.3% rate posted in August. 

     The CPI rose 0.5% m/m last month after a 0.4% rose in August. CPI has risen

m/m for three consecutive months after dropping four of the previous five

months. 

     PRODUCER PRICE INDEX

     China's Producer Price Index accelerated to 6.9% year-on-year in September,

the highest rate since March (7.6%), from 6.3% in August. The rise was largely

unexpected, with MNI survey median forecast calling for an unchanged rate of

6.3%. 

     September marks the 13th consecutive month that the PPI rate has been

positive since it exited negative territory in September 2016.

     On a month-over-month basis, the PPI rose 1.0% in September compared to a

0.9% gain the month before. September PPI rose m/m for the third consecutive

month after falling each of the previous three months. 

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

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com