The Chinese Consumer Price Index has finally arrived, albeit late:
Actual June CPI (MoM): -0.4% vs. -0.2% the prior month; expected -0.1%.
Actual June PPI (YoY): 8.8 percent vs. 9.0 percent expected: 8.8 percent
Actual CPI (YoY): 1.1 percent vs. 1.3 percent previously; highest 1.2 percent.
The AUD/USD has remained unchanged in response to the news.
China’s National Bureau of Statistics publishes the Consumer Price Index. It’s a metric for comparing retail prices across a broad basket of goods and services. The end result is a thorough presentation of the findings from both the urban and rural consumer price indices. Inflation has driven down the CNY’s purchasing power.
The Consumer Price Index (CPI) is a key indicator for measuring inflation and changes in purchasing patterns. A significant increase in the consumer price index would suggest that inflation has become a destabilizing element in the economy, causing the People’s Bank of China to tighten monetary policy and risk fiscal policy. In general, a high reading is considered beneficial (or bullish) for the CNY, while a low reading is considered negative (or bearish)./n
