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China's CPI MoM +0.2% vs -0.1% expected. YoY -0.3% vs -0.4% last expected
Prior month CPI YoY 0.0%. • Prior month CPI MoM -0.2%. • China CPI MoM for July 0.2% vs -0.1% expected. • China CPI YoY for July -0.3% vs -0.4% expected. • China PPI YoY for July -4.4% vs -4.1% expected. Prior month -5.4%. The YoY falling below 0.0% is the first since February 2021. There is little reaction to the mixed inflation data. The fall below 0.0% in CPI and PPI is the first since 2020, but China NBS says the decline in CPI is only temporary. The offshore yuan rose (USDCNH lower) after the lower fixing for the USDCNY. The USDCNH is now moving to a new low after a brief bounce after the data. chart
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China reports smaller-than-expected drop in consumer prices
China reported a 0.3% drop in consumer prices in July from a year ago, and a 4.4% year-on-year drop in producer prices in July, according to the National Bureau of Statistics Wednesday. China’s consumer price index was expected to drop by 0.4% in July from a year ago, according to analysts polled by Reuters. The producer price index was forecast to fall by 4.1% in July from a year ago, the poll showed. Lackluster domestic demand has persisted since the pandemic. China’s consumer price index was flat in June from a year ago. Second-quarter data prompted several economists to warn of growing risk of deflation — a ... (full story)