China inflation data snippet preview via ING:
- October CPI should show inflation remaining very subdued due to weak consumption and as indicated by recent service sector PMIs even though the data is for October, the month of the Golden Week holidays. In contrast, PPI should be in year-on-year contraction but should show faster month-on-month growth from higher energy prices. Still, there is no inflation risk as producers cannot pass increased costs to consumers. Instead, this should result in thinner profit margins.
I posted earlier that official CPI numbers in China are showing the rate well within target range and thus present o impediment to the PBOC easing policy should they wish to.
