China’s CPI steadies at 2.8% y/y in August, beats estimates – Aussie unmoved

According to the latest data published by China’s National Bureau of Statistics  (NBS) on Tuesday, the  Chinese  Consumer Price Index (MoM) came in at +0.7% in August vs. +0.5% exp and +                 0.4% last while the Consumer Price Index (YoY) steadied at +2.8% last month vs. +2.6% exp and +2.8% booked in July.

Meanwhile, China’s Producer Price Index (YoY) (August) arrived at -0.8% in vs. -0.9% exp and  -0.3% last.                      

The upbeat Chinese data had little impact on the Aussie Dollar, leaving the AUD/USD pair firmer near 0.6865 region.

About China 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.