The Consumer Price Index has been released by the National Bureau of Statistics of China as follows:
CHINA DECEMBER CPI +0.2 PCT Y/Y (REUTERS POLL +0.1 PCT).
CHINA DECEMBER CPI +0.7 PCT FROM PREVIOUS MONTH (REUTERS POLL +0.4 PCT).
CHINA SAYS DECEMBER FOOD CPI +1.2 PCT FROM A YEAR AGO; NON-FOOD CPI 0.0 PCT.
CHINA DECEMBER PPI -0.4 PCT Y/Y (REUTERS POLL -0.8 PCT).
CHINA DECEMBER PPI +1.1 PCT FROM PREVIOUS MONTH.
AUD/USD which is down some 0.7% on the day was supported at the lows ahead of the data remains fragile.
More to come…
Description of the Consumer Price Index
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 purchase 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.
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