Due at 0130GMT from China, CPI and PPI for August y/y
– CPI expected 1.7%, prior 1.6%
– PPI expected -0.9%, prior -1.7%
Food prices account for around a third of the China CPI; the big falls in pork prices have stabilised (still down, but at a much slower rate according to the latest from the NBS). offsetting the fall, fresh vegetable & fruit prices have moved higher. The key ‘swing’ component may well be rice, which has seen upward price pressure due to a poor, early harvest.