The China Consumer Price Index for June has arrived as follows:
China Consumer Price Index
- China June CPI -0.1 pct from previous month (Reuters poll 0.0 pct).
- China June CPI +2.5 pct from a year ago (Reuters poll +2.5 pct).
- China says June food cpi +8.3 pct from a year ago; non-food cpi +1.4 pct.
China June PPI
China June PPI -3.0 pct from a year ago (Reuters poll -3.2 pct).
China June PPI -0.4 pct from the previous month.
AUD/USD is slightly offered over the data by around 7 pips.
Description of the Consumer Price Index
The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services.
The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index.
The purchase power of the CNY is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends.
A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk.
Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.
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