yuanAlamyChina was meant to have embraced free market reform.
Inflationary pressures in China eased in September with CPI rising 1.6% from a year earlier. The increase, well below the 2% pace of August, was below expectations for a rise of 1.8%.
A sharp moderation in food inflation, up 2.7% from 3.7% in August, largely explains the decline in the headline CPI figure. Pork prices, a staple of the Chinese diet and influential on overall food price inflation, eased to 17.4% from 19.6%.
Non-food inflation also eased to 1.0% from 1.1% seen previously.
China CPI PPI Sept 2015Business Insider Australia
Elsewhere producer prices continued to decline, falling 5.9% from September 2014. The reading was unchanged from August and in line with expectations.
While the weak inflationary print is reflective of a slowdown in China’s economy, it also opens the prospect for additional monetary policy easing from the PBOC in the months ahead.
Following the September CPI and PPI figures released today, China’s national bureau of statistics will also deliver monetary growth and bank lending figures later in the week.
On Monday next week the data calendar reaches its crescendo with the release of industrial production, retail sales and urban fixed asset investment figures for September, along with the most important of them all, Q3 GDP.
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