Bankinter | August CPI rises to +0.6% year-on-year from +0.5% previously, however, it is a tenth of a percentage point lower than expected. The Underlying Rate rose +0.3% year-on-year in August (up from +0.4% average) and registers the lowest rate since March 2021. (2) August Industrial Prices declined -1.8% year-on-year from -0.8% pre and worse than the expected -1.5% year-on-year.
Bankinter’s analysis team’s opinion: The two price references show the absence of inflationary pressures in the Chinese economy and encourage the risk of deflation. Although the CPI is at its highest level since February, with increases in Food, aggregate growth is lower than expected. This is evidenced by an Underlying Rate at more than three years of lows, raising fears of a lack of price pressure. In Industrial Prices the evolution is even weaker, where the decline is accelerating.
