China September CPI 0.7% y/y (expected 0.9%) PPI 10.7% (expected 10.5%)

China CPI 0.7% y/y vs. expected 0.9% y/y, prior 0.8%

PPI 10.7% y/y

• expected 10.5% y/y, prior 9.5%
• PPI fastest gain since 1995

For the m/m numbers, CPI 0.0% and PPI 1.2%

The solid rises in wholesale prices are have so far not been passed on to consumers. this will pressure industry profits and in turn business capex ahead.

Yesterday was this:

• ANZ say a PBOC RRR cut announcement may come on Friday October 15

The CPI level is not standing in the way of this.

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Background to this:

• China September inflation data is due later this week - PPI expected to rocket higher. Preview.