Chinese Inflation Expected at 1.5%
China’s consumer price index (CPI) rose by 1.6 percent in September when compared to a year ago. The forecasts called for a change of 1.8 percent. The cooling inflation measure is another indicator that points to the slowdown of the Chinese economy. There was optimism back in September when the August data was released and touched 2.0 percent for the first time in almost a year. As global demand falls, China has looked inward to grow the economy. Lower consumption as evidence by the CPI index could force the hand of the People’s Bank of China (PBoC) to stimulate the economy yet again in the search for growth. The forecasts this time are focused on 1.5 percent inflation growth.
Industrial production in China fell to below 6 percent monthly growth last month with a reading of 5.7 percent. The Minister of Industry and Information Technology has gone on the record to say he expects the 2015 annual growth to be above 6 percent. That is not a very encouraging forecast, given that last year the industrial production showed 8.3 percent growth. Again sluggish demand abroad and at home has hurt output.
China events to watch this week:
Monday, November 9
8:30pm CNY CPI
Wednesday, November 11
12:30am CNY Industrial Production
*All times EST
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar