China has released August inflation data with the CPi in at 2% an PPI at -1.2%:
Both prints are weak but the PPI is more important to Australia. Weakness in industrial prices suggest weakness in the sectors that import bulk commodities. Given the degree of price falls we’re seeing in the steel sector this is perhaps no surprise but it does reinforce the notion that all is not well.
Having said that, the combined weak prints are certain to fire up Western analyst calls for more stimulus.
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