China’s CPI beats estimates with 1.0% YoY in July, AUD/USD tests 0.7350

Dhwani Mehta FXStreet

According to China’s National Statistics Bureau (NBS), the country’s annualized Consumer Price Index (CPI) came in at 1.0% in July, outpacing expectations of 0.8% while rising from June’s reading of 1.1%.

The monthly CPI figures jumped to 0.3% YoY in July when compared to 0.2% expectations and -0.4% recorded previously.

China’s Producer Price Index (PPI) arrived at 9.0% YoY in July vs. 8.8% expected and 8.8% previous.

AUD/USD reaction

AUD/USD showed little reaction to the upbeat Chinese inflation data, as it kept its recovery mode intact below 0.7350.

The spot was last seen trading at 0.7345, down 0.10% on the day.

About China’s CPI

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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