Repeat: China CPI, PPI Rise More Than Expected In August

--Repeating To Correct Format Display Error

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

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

                         CPI           PPI

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

August                   1.8           6.3

Forecast Median          1.7           5.7

Previous                 1.4           5.5

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

     FACTORS:

                             Aug          Jul

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

CPI m/m                     +0.4         +0.1

Food price y/y              -0.2         -1.1

Non-food price y/y          +2.3         +2.0

PPI m/m                     +0.9         +0.2

     CONSUMER PRICE INDEX

     China's Consumer Price Index accelerated to 1.8% year-on-year in August

from 1.4% in July. The August rise was stronger than expected, with the MNI

survey median projecting a 1.7% rate. The August rate was the highest since

January's 2.5%. 

     Food prices fell 0.2% y/y in August, the seventh decline in a row, but a

much smaller decline that the 1.1% y/y drop in July. 

     Non-food prices rose 2.3% year-on-year in August, accelerating from the

2.0% rate posted in July. 

     The CPI rose 0.4% m/m last month after a 0.1% drop in July. CPI has risen

m/m for two consecutive months, with the August rate the highest since 1.0% in

January.  The m/m rate had declined four of the previous six months.  

     PRODUCER PRICE INDEX

     China's Producer Price Index accelerated sharply to 6.3% year-on-year in

August from the 5.5% rate in July. Like CPI, the PPI increase was stronger than

expected, with MNI survey median forecasting a 5.7% rate. August marks the

twelfth consecutive month that the PPI rate has been positive since it exited

negative territory in September 2016.  The August PPI rate was the highest since

April's 6.4%, after stabilizing at 5.5% each of the previous three months.  

     On a month-over-month basis, the PPI jumped 0.9% in August compared to the

0.2% gain the month before. August PPI rose m/m for the second consecutive

month, at the highest rate since December's 1.6%. 

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

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