China Oct CPI is out, core CPI excl. food and energy, there was 0% increase month over month, and only 0.2% increase year over year.
Almost all kinds of food price dropped MoM, with pork dipping 3.7% MoM (+14.2% yoy).
Including food and energy, Oct CPI dropped 0.3% MoM and increased 0.3% YoY.
In Sep, the core CPI YoY increase was at 0.1% while MoM is -0.1%.
Thoughts?
a) Powell would love US CPI / PCE look more like China’s… not exactly the same, otherwise that might indicate a problem with demand..
b) The end of Sep & early Oct China’s stock market rally didn’t move the needle / has limited impact so dar. Day to day consumption still looks weak.
c) Rental price dropping 0.1% MoM and 0.3% YoY.