Weekend inflation data from China - CPI up (7 year high) PPI down
China's consumer price index (CPI) hit at 7 year high at 3.8% y/y in October, vs. 3% the previous month
- Pork prices continued gaining amidst the swine flu epidemic. Core CPI (excludes food and energy prices) gains were not as dramatic.
PPI down 1.6% y/y vs. down 1.2% in Sep. This will continue to be a negative for business profitability.
- falling raw material prices
Background to this data is, of course, trade war negotiations and ongoing (perhaps increasing?) stimulus from Chinese authorities.