China’s August CPI Meets Forecasts at 0.8%, PPI Accelerates Beyond Expectations

• China’s August CPI rose 0.8% year-over-year, meeting forecasts.
• Producer Price Index climbed 3.8%, exceeding expectations.
• Inflation remains below the government’s 2% target.

China’s Consumer Price Index (CPI) for August rose by 0.8% year-over-year, aligning with market consensus and marking an increase from 0.5% in July. On a monthly basis, CPI advanced 0.4%, exceeding the 0.3% expectation and reversing July’s 0.1% decline. The National Bureau of Statistics reported on Wednesday that Producer Price Index (PPI) inflation also accelerated, climbing 3.8% year-over-year, surpassing the anticipated 3.7% and July’s 3.5% rise, primarily driven by higher technology and energy prices. Despite the uptick, annual consumer inflation remains considerably below the government’s full-year target of around 2%. Following the data release, the AUD/USD pair saw a modest gain, trading up 0.07% at 0.7220.