Chinese inflation steadies

Monday, 15 October 2012

China’s September inflation is out and printed steady. CPI rose 1.9%, after 2% in August:

The second derivative of the PPI was also reassuring down -3.6%, versus prior -3.5% in August, showing a clear slowing in the drop:

This is reasonable data. Low inflation will give a boost to Chinese GDP and it looks like both measures are in the process of bottoming suggesting better activity ahead.

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.