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China’s Factory Deflation Deepens in September

Published 10/14/2019, 11:16 PM
Updated 10/14/2019, 11:17 PM
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Investing.com - China’s factory deflation worsened in September, data from the National Bureau of Statistics showed.

The producer price index fell by 1.2% year-on-year. It marked the steepest factory price decline July 2016, but was in line with expectations.

The country’s consumer price index (CPI) increased 3% year-on-year in September. Pork prices in China jumped 69.3% from a year ago. It is the major driver in the overall increase in CPI.

Analysts previously expected CPI to gain by 2.9%.

The data had little impact on Chinese stocks as traders’ focus continued to focus on the Sino-U.S. trade war. U.S. President Donald Trump announced late last week that the two sides reached a “very substantial phase one” trade deal, but reports today said China wants to hold more talks before signing the deal.

China’s Shanghai Composite and the SZSE Component were down 0.6% and 1.0% respectively in morning trade.

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