China's CPI steadies at 0.7% m/m in September, meets estimates

Dhwani Mehta FXStreet

According to the latest data published by China’s the National Bureau of Statistics (NBS), the Chinese Consumer Price Index (MoM) (September) stod unchanged at +0.7% vs +0.7% exp while Consumer Price Index (YoY) (September) 2.5% vs 2.5% exp and 2.3% last.

Meanwhile, China’s Producer Price Index (YoY) (September) arrived at 3.6% vs 3.5% exp and 4.1% last.

Key Details (via Reuters):

“Prices of raw materials rose 7.3 percent in September from a year earlier, down from a 7.8 percent increase in August, according to the statistics bureau.

The core consumer price index, which strips out volatile food and energy prices, rose 1.7 percent year-on-year, compared with 2.0 percent in August.

The food price index increased 3.6 percent in September, up sharply from the 1.7 percent annual gain in September, due to extreme weather conditions such as seasonal typhoons, heavy rains and hailstorms. “

About China 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 purchasing 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.

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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