China: CPI to top out in the beginning of next year – Danske Bank

Danske Bank analysts note that the Chinese CPI out this morning showed a reading of 4.5% (YoY, 4.3% expected, 3.8% in October).

Key Quotes

“The Chinese CPI has been heavily affected by pork prices throughout 2019 due to the outbreak of swine fever and higher food prices contributed 3.72pp to the headline inflation.”

“Core inflation came in at 1.4%, which was the 15th straight month below 2%. There are signs though, that the effect from higher pork prices is slowing, which could lead to the CPI topping out in the beginning of next year.”