The deflationary grip on China’s huge manufacturing sector continues to disappear as activity and demand recover from the long slumber when pricing power fell into the deep freeze.
In fact the country’s PPI (Producer Price Inflation) rate jumped sharply in October to an annual rate of 1.2% (it was a negative 5.9% around a year ago) from 0.1% in September to be on the cusp of the highest level in five years. The last time the pIT rose at anything near this rate was in December, 2011.
China’s consumer inflation jumped to its fastest rate in six months in October as food prices again rose last month.
The consumer price index (CPI) rose 2.1% in October 2015, compared with a 1.9% increase in September, China’s National Bureau of Statistics said on Wednesday.
That is still well under the 3% government ceiling.
A jump in food prices fuelled faster consumer inflation in October. Food prices rose 3.7%, compared with a 3.2% rise in September. Non-food prices inched up 1.7% versus September’s 1.6% rise.
On a monthly basis, consumer prices fell 0.1%.
China’s economy expanded at a steady 6.7% in the third quarter and looks set to hit Beijing’s full-year target, thanks to stronger government spending, high bank lending, allof which has spared a rebound in the property market and house prices.
After the US election results yesterday, all this is a little historical.
