China September inflation: CPI +1.7% y/y (expected 1.9%) PPI -2.1% (vs. -1.8%)

September inflation data from China

China CPI +1.7% y/y

• expected 1.9% y/y, prior 2.4%

PPI -2.1% y/y

• expected -1.8% y/y, prior -2.0%

The PPI, negative, weighs on business profitability and in turn future capex. Little wonder the PBOC is keeping policy very loose indeed, injecting further cash today.

• PBOC conducts a 500bn yuan MLF