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Chinese inflation for August is out with the CPI tame at 1.3% and the always more interesting PPI still ripping towards the positive at -0.8%. The monthly figure actually was positive at 0.2%:
This is the fruits of China’s 2016 stimulus, both credit and currency, dragging up prices in the industrial sector as some idle supply is taken up. However, a lot of this is actually just commodity inflation as iron ore and coal head for the heavens and boost input prices.
The PPI is thus a quite useful leading indicator for bulk commodity prices and so far strength is intact.
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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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