China’s consumer inflation picked up but was below expectations … limp demand


The data is here:

As a recap:

  • consumer inflation picked up, rose for a seventh consecutive month
  • CPI was below expectations
  • the month saw supply constraints caused by abnormal weather
  • but concern persists over limp demand

Core CPI (strips out food and energy prices) rose 0.3% y/y, a second consecutive month of slower rise (July was 0.4, June was 0.6, May was 0.6).

As for PPI, factory-gate prices in August fell for a 23rd straight month of contraction, at a much faster than expected pace.

This article was written by Eamonn Sheridan at www.forexlive.com.