Chinese inflation data, both CPI and PPI, for August 2024.
- The m/m PPI is -0.7% (prior -0.2%)
The CPI is a slight miss on both the y/y and m/m. But the PPI is a shocker of a miss on both.
Real rates in China re weighing on demand. And yet the People’s Bank of China is slow to bring them down. The Bank had been concerned about a weakening yuan and potential large-scale capital flight. but the rise for the yuan seems to give them breathing room. However, they’ve done little with it, so far at least.
This article was written by Eamonn Sheridan at www.forexlive.com.
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