China: Inflation up but prices down – ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) provide their review on Saturday’s Chinese inflation report.

Key Quotes:

“China saw its consumer price index rise to 3.8% y/y, higher than the 3.4% y/y increase expected for October. Core CPI inflation held firm at 1.5% y/y.

Higher food prices bolstered the headline number, with pork prices up 101.3% y/y, up from the 69.3% y/y rise seen in September.

Meanwhile, following a 1.2% y/y decline in September, China’s producer price index fell by a further 1.6% y/y in October.”