China CPI mixed: A rise in food prices keeps inflation elevated despite lockdowns

China'sinflation data released by the National Bureau of Statistics of China has been released as follows:

• China sept CPI +2.8% YoY (Reuters poll +2.8% ).
• China sept PPI +0.9% YoY (Reuters poll +1.0%).
• China sept CPI +0.3% MoM (Reuters poll +0.4%).
• China sept PPI -0.1% MoM.
• China sept food CPI +8.8%.

China's consumer prices in September rose at the fastest pace since April 2020, mainly driven by food prices, limiting the scope for more central bank easing to prop up a faltering economy hit by COVID-19 restrictions and a property sector slump, Reuters reported. 

''The consumer price index (CPI) rose 2.8% from a year earlier, quickening from a 2.5% increase in August, National Bureau of Statistics (NBS) data showed on Friday, in line with forecast in a Reuters poll of analysts.

The producer price index (PPI) rose 0.9% year-on-year from 2.3% growth a month earlier, and compared with a forecast of 1.0%.

The world's second-largest economy barely grew in the June quarter and has struggled to regain traction amid protracted pandemic restrictions, a severe slump in the property market and softening exports.''

AUD/USD is perky on the release, moving from  0.6310 to score session highs of 0.6327 so far. 

About Chinese CPI

The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchasing power of the CNY is dragged down by inflation.

The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.