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China’s inflation numbers are out and rose 3.1 per cent from a year earlier ahead of the 2.8 per cent median estimate and compared with a 2.6 per cent gain in August.
Producer prices fell 1.3 per cent from a year earlier versus consensus of a decline of 1.4 per cent after a 1.6 per cent drop the previous month. The grind in the industrial economy shows little sign of improving on these numbers. the price weakness is widespread. From ANZ:
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It is a creeping worry that the CPI is trending up as well via food. Charts form ANZ:
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I expect these numbers will again head south when the stimulus flush ends. In the mean time forget about any rate cuts, if you were thinking they might come.
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.
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