China's National Bureau of Statistics (NBS) released data for August inflation over the weekend (Mike had the post here)
Via Xinhua (official press agency of China):
Consumer inflation (CPI) picked up in August, driven by higher food prices
- CPI gained more than expected to a seven-month high
- Remained well below the government's annual inflation regulation target of around 3 percent for 2017
- NBS chief statistician Sheng Guoqing attributed the faster CPI growth to higher food prices as adverse weather pushed up vegetable prices while falling output led to sharp growth in egg prices.
Excluding volatile food and energy prices, the core CPI increased 2.2 percent year on year in August, up slightly from July's 2.1 percent. The core CPI has been holding steady at a little above 2 percent since March.
Factory-gate prices (PPI) also rose, fueled by rising commodity costs.
- Rose to a four-month high
- Higher than the market forecast
- Driven by increases in the prices of steel, non-ferrous metals, as well as oil and natural gas.
Producer prices accelerated upward, a significant positive sign for China's economy, which will help drive profits higher and enable companies to process their debt burden a little more easily, Bloomberg chief Asia economist Tom Orlik said.
However, Orlik said factory sector reflation remained vulnerable. The sector breakdown showed factory reflation was benefiting mainly upstream industries, with downstream industries squeezed.
