Coming up at 0130 GMT are China’s inflation figures for July
CPI expected 0.8% y/y, prior 1.1%
- the expectations for a lower rate of growth in prices is based on less upward pressure on food/agricultural prices
Meanwhile inflation at a producer level is expected to show no respite, PPI expected 8.8% y/y
- prior 8.8%
- commodity prices have remained high, steel and coal notably so. These are key inputs to Chinese industry (steel for construction etc).
- China has been making efforts to lower prices through various regulatory actions and releasing reserves from various stockpiles, July may mark a high water point and Ausgust PPI begin to turn down. That’s a month away though, … I’ll have more on this as we get closer in a few weeks. Meanwhile:
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