The 19th National Congress of the Communist Party of China is being held amid a week where there is a torrent of data on the Chinese economy. In terms of the economy, the National Congress is likely to keep a focus on economic and financial stability whilst ensuring the risks from financial pressures linked to risks in the banking and property sectors are carefully monitored and managed.
In terms of the Chinese data dump next week, the highlight is likely to be the inflation rate. Inflation, after all, is driving the policy actions of central banks around the world.
Through the course of 2017, inflation has picked up from a near record low level, with the economy continuing to register a solid rate of growth. That said, inflation is still below 2 per cent and is often influenced in the very short term by domestic one-off factors such as changes in food prices.
Source: Trading Economics
