China inflation data for September:
CPI 1.9% y/y
- expected 1.6%
- prior 1.3%
- For the m/m, CPI up 0.7%
PPI 0.1% y/y .... yes that's right ... UP ... PPI rises! That is the first time for the y/y above 0 for nearly 5 years (the last time it had a positive result was January of 2012)
- expected -0.3%
- -0.8% prior
- For the m/m, up 0.5%
The PPI result is an indication that industrial overcapacity may be being dealt with effectively. Admittedly it's a tentative sign only at this stage, but still.
Analysts are citing higher coal and steel prices as solid contributors to the higher PPI