CPI

China’s inflation suggests more liquidity easing

Inflation figures released today extend Beijing's license to ease liquidity policy further in coming weeks (CC Jan 12 Macro View) and further relieves manufacturers from the big margin squeeze that characterised 2011 (CC Jan 12 Consumer China).

Inflation ebbs, significant liquidity easing seen

Inflationary pressures eased in October, with the Consumer Price Index (CPI) showing a 5.5% YoY increase, down from a 6.1% YoY rise in September and the Producer Price Index (PPI) posting a 5% YoY rise against a 6.5% YoY increase in September. The numbers are in line with expectations (CC Nov 3 Macro View) and reinforce our call that significant liquidity easing is likely in the coming few months.

Discretionary spending continues to pick up on booming leisure travel

China's Bankcard Consumer Confidence Index, a measure of cardholder spending on non-essential items, continued to recover, up 0.1 percentage points from July to 86.2 in August, China UnionPay which compiles the index said. The reading is in line with findings from China Confidential's August Consumer Sentiment Indicator, released on Sept 1, which indicated overall discretionary spending remained robust in August, consistent with July.

China's inflation cools YoY and MoM in August

Pork prices ease, driving down CPI

New funds to boost hog numbers may take months

A new Chinese government policy to promote pig breeding through investment in large-scale pig farms and offering a subsidy of Rmb 100 per breeding sow is unlikely to have a substantial impact in bringing down pork prices this year. In the newly-launched "Rural China" section of the latest China Confidential report, published today, we explain that the root cause of skyrocketing pork prices is the culling of sows that took place during the 2010 trough in the hog cycle.

Inflationary pressures remain strong

Though a moderation in CPI is likely in September, October and November, underlying inflationary pressures remain strong.

Will the recent rate hike tame inflation?

Commentators discuss the Central Bank’s monetary policy stance in 2H11.

When will inflation start to abate?

Commentators discuss the fate of inflation which hit a 34-month high in May according to official figures.

How will the drought affect inflation?

Serious droughts along the Yangtze river have caused fishing yields to plummet and are likely to impact the summer rice harvest.

Unilever fined for talking of price hikes

Was it fair to fine Unilever Rmb 2m for talking to China's media about planned price hikes that were never implemented?

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09 Feb 2012

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