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China: Deflation fears back in contention with below consensus CPI print – TDS

FXStreet (Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, suggests that lingering deflation fears persist with CPI for Oct coming in below expectations, +1.3%/yr vs +1.5%/yr forecast.

Key Quotes

“Both food and non food components registered falls, food from 2.7% to 1.9%/yr, Non food from 1% to 0.9% and housing dropped as well, from 0.8% to 0.6%/yr . PPI came in as per expectations, -5.9%/yr. Today’s data offers Chinese officials scope to ease policy further.”

NZD: Home Sales data from the REINZ for Oct shows that new capital gains and LVR restrictions are impacting Auckland, but regional areas were firmer. Headline Home Sales +18.6%/yr (prior +38%/yr), sales nationally -4.1%/m thanks to Auckland sales down 19%/m. Ex Auckland Sales +27%/yr, and +5.5%/m. Prices in Auckland fell 3%/m, but ex Auckland +1.4%/m.”

China’s CPI/PPI figures for October point towards rising deflationary pressure

The data released by National Bureau of Statistics (NBS) today showed the Chinese October consumer price index (CPI) rose 1.3 per cent from a year earlier, declining further from 1.6 per cent in September. It was below the expectations of the Reuters poll of economists who estimated the CPI to come in at 1.5%.
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