China August inflation: CPI 0.8% y/y (vs. 1.0% expected) & PPI 9.5% y/y (vs. 9% expected)

China inflation data for August

China CPI % y/y

• expected 1.0% y/y, prior 1.0%

PPI % y/y

• expected 9.0% y/y, prior 9.0%

For the m/m

• CPI +0.1%
• PPI +0.7%

There is often the argument made that PPI pressures will feed into the CPI a little further down the road. So far this has not really been noticeable. Prices have not been passed on to consumers to the extent suggested by the PPI rise over past months. The higher costs incurred by producers have been absorbed by them.