China CPI for August: 2.8% y/y (expected 2.7%)

Inflation data out of China.

CPI 2.8% y/y

• expected 2.7%, prior 2.8%

PPI -0.8% y/y

• expected -0.9%, prior -0.3%

That very low PPI will see increased stimulus calls. Such a slow PPI will weigh on business profitability, which in turn will weigh on employment and capex plans.

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Background here:

• China inflation data due today - preview