China’s annual consumer inflation rose 2.6 per cent in August, in line with market expectations and little changed from the previous month’s 2.7 per cent rise.
Producer prices fell 1.6 per cent last month from a year earlier, compared with a fall of 2.3 per cent in the previous month.
I’m more impressed by the latter. It appears the rampant deflation in Chinese heavy industry that we’ve seen over the past 18 months is easing, though it is still deep. It suggests a trend towards greater capacity utilisation even if only slowly.
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An unremarkable release overall.
