China’s consumer prices rise at fastest clip in nearly 8 years

epa07982572 A salesman waits for consumers at a pork stall in a super market in Beijing, China, 09 November 2019. China's consumer price index (CPI), a main gauge of inflation, rose 3.8 percent year-on-year in October, according to the National Bureau of Statistics on 09 November 2019. EPA-EFE/WU HONG

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China’s producer prices fell the most in more than three years in October, as the manufacturing sector weakened on declining demand and a knock from the Sino-U.S. tariff war, reinforcing the case for Beijing to keep the stimulus coming.

The producer price index (PPI), seen as a key indicator of corporate profitability, fell 1.6% in October from a year earlier, marking the steepest decline since July 2016, National Bureau of Statistics (NBS) data showed on Saturday. Analysts had tipped a contraction of 1.5% for the PPI.

In contrast, China’s consumer prices rose at their fastest pace in almost eight years, driven mostly by a surge in pork prices as African swine fever ravaged the country’s hog herds.

Some analysts say the CPI rise could become a concern for policymakers looking to introduce measures to prop up demand.

 

Via CNBC

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