ICYMI – China inflation information over the weekend confirmed CPI flirting with deflation

Chinese language inflation information for October was sneaked out over the weekend:

• China October CPI +Zero.three% y/y (anticipated +Zero.four%, prior +Zero.four%), deflation prospect lingers

Chinese language authorities wish to see the CPI greater. If there was encouragement for them it was in core inflation which moved to +Zero.2% y/y in October from +Zero.1% in September. Lest they get too excited, although, headline CPI fell Zero.three% m/m in October from flat in September.

PPI, after all, stays a basket case. Try that hyperlink for the deepening y/y figures. For the m/m it fel;l Zero.1% in October from -Zero.6% in September. Perhaps one other ray of hope for authorities.

Late September proper by way of October and into November noticed contemporary stimulus bulletins from China. Overal;l the market has seen these with disappointment:

• Chinese language yuan falls as NPC announcement lacks oomph up to now
• The optimism within the Chinese language market yesterday was baffling

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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