China’s consumer inflation picked up but was below expectations ... limp demand

The data is here:

• China August 2024 CPI +0.6% y/y (expected +0.7%)

As a recap:

• consumer inflation picked up, rose for a seventh consecutive month
• CPI was below expectations
• the month saw supply constraints caused by abnormal weather
• but concern persists over limp demand

Core CPI (strips out food and energy prices) rose 0.3% y/y, a second consecutive month of slower rise (July was 0.4, June was 0.6, May was 0.6).

As for PPI, factory-gate prices in August fell for a 23rd straight month of contraction, at a much faster than expected pace.