China Sep. CPI 1.6% y/y (expected 1.6%) and PPI 6.9% y/y (expected 6.4%)

September inflation data from China; later in the week we get GDP for Q3 and also the National Congress begins

CPi 1.6% y/y in line

• expected 1.6%, prior 1.8%
• +0.5% m/m

PPI 6.9% y/y and much higher than expected ... the reflation continues strong at this level

• expected 6.4%, prior 6.3%
• For the m/m, up 1% - a big jump

Sheesh .... that took some time .... finally out now

That PPI acceleration - domestic demand is strong, capacity cuts helping survivors raise factory gate prices, construction booming, over the weekend we got continued credit growth indications: China lending exceeds expectations (September credit growth data)