The Chinese CPI and PPI data were out earlier – data is here

A recap now from Bloomberg:

  • China’s factory-gate prices fell in September for a record-tying 31st month
  • The drop in PPI matches a streak from 1997 to 1999, when a financial crisis roiled Asia
  • Now a property slump in China is pushing down the nation’s annual growth to what analysts project is the slowest pace since 1990, and People’s Bank of China Governor Zhou Xiaochuan said this month that inflation will probably “stay mild.”
  • Consumer inflation eased to the slowest since January 2010, adding to signs of tepid demand in the world’s second-largest economy

Zhou Hao, a China economist at Australia & New Zealand Banking Group Ltd. in Shanghai:

  • “Overcapacity is still plaguing the domestic market, and the weak property sector is dragging industrial demand even lower”

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The article also notes that while the trade balance data showed exports rose more than estimated from a year earlier and imports unexpectedly rebounded, analysts said over-invoicing and over-reporting may explain part of the export surge.