CH PPI y/y

Global commodities markets are stuck in a holding pattern after China’s latest effort to revive its economy focused on the much-needed restructuring of local government debt, but stopped short of stimulus measures that would directly boost domestic demand. Delivered by the finance ministry on Friday afternoon, Beijing’s move amounted to a hefty $1.4 trillion bailout to refinance “hidden” debt. Specific steps to revive consumption, however, were lacking — and while raw materials may well benefit from the largesse, it is not yet clear ...

China’s consumer prices rose at the slowest pace in four months in October while producer price deflation deepened, data showed on Saturday, even as Beijing doubled down on stimulus to support the sputtering economy. In its latest stimulus measures, the country’s top legislative body approved a 10 trillion yuan ($1.4 trillion) package on Friday to ease local government “hidden debt” burdens, rather than directly injecting money into the world’s second-biggest economy, as some investors had hoped. Analysts say the package will likely ...

Chinese consumer price index inflation picked up in August, although a mild increase from the July inflation figure, while producer price index inflation shrank at the fastest pace in 4 months. China's consumer price index, a main gauge of inflation, grew 0.6% on an annualized basis, data from the National Bureau of Statistics showed on Monday, beating expectations of 0.6% and a tick higher than 0.5% in the prior month. On a monthly basis, inflation came in at 0.4%, a modest miss from 0.5% consensus and 0.5% in the prior month. The ...

After the US jobs report and Fed speak, the market scaled back the odds of a 50 bp cut at the September 17-18 FOMC meeting. It settled last week slightly below a 30% chance. The odds were shaved for the second consecutive week. Fed officials have indicated that the full employment mandate is now of greater significance given its growing confidence that inflation is heading back toward its 2% target. Next week's August CPI and PPI are likely to be consistent with that narrative. Ahead of the weekend, the two-year yield posted its ...

The European Central Bank’s carefully choreographed rate-cutting cycle got off to an awkward start in June after last-minute data upsets. For credibility’s sake, policymakers had only one choice – press ahead with the planned 25-basis-point rate reduction but present it as a ‘hawkish cut’. Fortunately for the doves and struggling European businesses, the case for further policy easing has strengthened since the last gathering in July when rates were kept on hold. Headline inflation dipped to 2.2% y/y in August and the rebound in euro ...