MNI BRIEF: China's Sep CPI, PPI Fall Narrow, Core CPI Rebounds
China’s Consumer Price Index fell 0.3% y/y in September, narrowing from August's 0.4% fall but missing expectations for a 0.2% drop, mainly due to the lower comparison base for the same period last year, according to data from the National Bureau of Statistics released Wednesday.
On a monthly basis, CPI rose 0.1%, edging up from August's 0.0% growth. Core CPI, which excludes food and energy, rose 1.0% y/y for the first time in 19 months, expanding for the fifth consecutive month from August's 0.9% rise.
| Key Drivers | Month-on-month Change | Year-on-year Change | ||
| Sep | Aug | Sep | Aug | |
| Pork | -0.7% | -0.5% | -17.0% | -16.1% |
| Vegetables | 6.1% | 8.5% | -13.7% | -15.2% |
| Gold Jewelry | 6.5% | / | 42.1% | 36.7% |
| Tourism | -6.1% | -0.6% | 0.9% | 0.7% |
China’s Producer Price Index fell 2.3% y/y in September, narrowing from August's 2.9% drop, marking the 36th straight month of decline, in line with market expectations of a 2.3% fall.
On a monthly basis, PPI rose 0.0%, unchanged from the previous month, as prices in the coal, steel and photovoltaic sectors stabilised as supply and demand rebalanced.
