China inflation sinks

Advertisement

China’s September inflation is out and has sunk to its lowest level since the GFC at 1.6%, miles below the official target of 3.5%. The PPI, my preferred measure given its influence as leading indicator for commodity prices, also sank to -1.8%. Both were below expectations:

CPI

The weakness in the Chinese economy is obvious. I expect only a partial turnaround.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.