Chinese CPI weakens in September, but factory gate inflation quickens

Alexander Bueso WebFG News | 16 Oct, 2017 17:26 - Updated: 10:05 | | |

cbpeterthiel1

Price pressures in China abated last month at the consumer level, even as factory gate prices jumped, as food price deflation intensified.

Yet economists were skeptical that the strong price pressures evident in Monday's data would persist.

At the headline level, the rate of gain in consumer prices fell back from 1.8% year-on-year for August to 1.6% in September, as expected by consensus.

Food price deflation was the sole cause - especially the decline in pork prices - behind the retreat in CPI with prices falling back at a 1.4% clip year-on-year after edging lower by 0.2% in the month before.

Non-food prices on the other hand picked up from a 2.3% pace on the year in August to 2.4%.

With energy costs essentially stable, the 'core' rate of CPI edged up by a tenth of a percentage point to 2.3% - a six-year high.

That, said Julian Evans-Pritchard at Capital Economics, was proof that upstream producer prices had at least partially fed into downstream consumer level inflation.

In parallel, producer price gains accelerated from a 6.3% clip over the year to a 6.9% pace, led by prices for metals.

However, Evans-Pritchard believed that in coming quarters policy tightening was set to become an increasing headwind to both prices and the pace of economic expansion.

More news

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.