China: Strong CPI data – TD Securities

Analysts at TD Securities note that the China’s CPI for July rose 2.8% y/y, slightly beating market estimates of 2.7% y/y, driven by food prices.

Key Quotes

“Prices of fresh fruit jumped 39.1% from a year ago while pork prices increased 27%; combined, these two components pushed CPI up by 1.22 ppts.”

“In contrast, PPI for July fell 0.3% y/y, larger than market estimates of -0.1% . This is the first annual decline in PPI since 2016.”