China data – CPI for October +1.6% y/y (vs. expected +1.6%)

China:

CPI for October +1.6% y/y

• expected +1.6%, prior was +1.6%
• The CPI for the m/m in October is flat at 0.0% change

China PPI for October -2.2% y/y

• expected -2.0%, prior was -1.8%
• PPI m/m is -0.4%

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On these figures (flat CPI on the month and PPI in under expectations) inflation is not a concern … .but maybe disinflation is. I expect we will keep seeing targeted stimulus in China.