🇨🇳Cable FX Macro Weekly Note: China Sep. CPI

**As seen in Risk In The Week report 10/07/22, cablefxm.co.uk/reports

China consumer prices saw the first signs of stabilization in August, after having posted higher than previous figures since February. August CPI printed at 2.5% Y/y, down from the previous 2.7% and lower than the median survey of 2.8%. China producer prices came in at 2.3% Y/y, the was lower than the forecast of 3.2%. Services came in steady at 0.7% while consumer goods slowed to 3.7% from 4.0%. Food prices decreased to 6.1% from 6.3%, this was the first deceleration seen in five months. The team at Bloomberg economics stand out of the consensus and see CPI printing at 3.0% Y/y, supported by higher food inflation, they note that pork prices jumped by 70% (prev. 46%). The BE team also commented on their high-frequency indicators flagging other agricultural products accelerating faster during September. They also note that core CPI and producer prices are likely to slowdown in August, the former sees a higher base while the latter is reflecting softer commodity prices.