China’s PPI, CPI Miss Expectations in September - Forex News by FX Leaders
China's PPI, CPI Miss Expectations in September

China’s PPI, CPI Miss Expectations in September

Posted Thursday, October 15, 2020 by
Arslan Butt • 1 min read

Annual factory gate prices across China declined for the eighth consecutive month while consumer prices increased at the slowest pace seen in 19 months during September. The latest data highlights worries about economic recovery in China, the first country in the world to bring the coronavirus pandemic under control and reopen its economy.

According to data released by the NBS, China’s PPI was down by 2.1% YoY in September, a sharper fall than the 2% decline seen in August and the 1.8% fall forecast by economists. On a monthly basis, September’s PPI increased by 0.1% since August, but the rate of increase was less than the 0.3% MoM rise seen in the previous month.

Meanwhile, China’s CPI came in at +1.7% YoY for the month of September, marking the weakest reading seen since February 2019. The figure also came in below the previous month’s reading of +2.4% and lower than economists’ forecast of +1.8%. Core CPI, which excludes volatile food and energy prices, increased by 0.5% YoY for the period.

China’s economy had been posting a strong recovery after the strict lockdowns imposed in Q1 to contain the pandemic. However, the cooling off in PPI and CPI are raising worries about possible deflation, which could drive the government to roll out more stimulus initiatives.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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