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Analysts at TD Securities point out that on Saturday China released October CPI data revealing that inflation rose more than expected, 3.8% y/y (mkt 3.4% y/y).

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“Once again pork prices jumped due to the impact of African Swine Disease, up 20.1% m/m and a huge 101.3% y/y. Higher pork prices have also helped to drive up other meat products and resulted overall food price inflation rising by 15.5%, its highest since June 2008. This will have little implication for monetary policy however and in fact the CPI suggests more room for easier policy if pork is excluded. Ex-food CPI actually dropped to 0.9% y/y, its lowest in 4 years. Additionally PPI was even more negative at -1.6% y/y.”