China Consumer Inflation Rose 2.6 Percent in August

China’s annual consumer inflation rate rose 2.6 percent in August, official data showed on Monday, in line with market expectations and little changed from the previous month’s 2.7 percent rise.
The National Bureau of Statistics also said that China’s producer prices fell 1.6 percent last month from a year earlier, compared with a fall of 2.3 percent in the previous month.

Economists polled by Reuters had expected consumer inflation of 2.6 percent and factory-gate prices to fall 1.8 percent.

Month-on-month, consumer prices were up 0.5 percent versus a rise of 0.4 percent expected by economists.

China shares extended gains after the positive data which added to optimism following solid trade data over the weekend.

The CSI300 of the leading Shanghai and Shenzhen A-share listings was up 2.1 percent at 2,408.1 points. The Shanghai Composite Index gained 1.9 percent. Both are now at their highest intra-day levels since mid-August.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza