- Analytics
- News and Tools
- Market News
- China: Weak price data affirms slowing demand – UOB Group
China: Weak price data affirms slowing demand – UOB Group
China’s Consumer Price Index (CPI) picked up further to 0.6% y/y in Aug but was short of market’s expectation (Bloomberg est: 0.7%; Jul: 0.5%). The rebound in food inflation was the driver, which more than offset lower non-food inflation, UOB Group economist Ho Woei Chen notes.
Headline CPI picks up less than expected
”China’s CPI picked up in Aug, driven by a sharp rebound in food prices which turned positive for the first time since Jul 2023. Amid persistent weak demand, core inflation and services inflation eased further while PPI deflation widened sharply in Aug.”
“Factoring in the higher food inflation, we adjust higher our headline CPI forecast to 0.5% from 0.3% for 2024 (2023: 0.2%). However, we revised our full-year forecast for the PPI to -2.0% from -1.3% for 2024 as underlying demand has stayed weak.”
“Weaker domestic price pressure and the monetary policy easing in the developed economies have combined to support further easing by the PBOC. The near-term focus will be on a further cut to banks’ reserve requirement ratio (RRR), targeting the release of long-term liquidity to boost credit expansion which had slowed sharply this year due to weak investment and mortgage demand.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
