China Inflation Routs Expectations
China's consumer price index rose 1.6% in September from a year ago, meeting expectations, according to figures released Monday by the National Bureau of Statistics.
Meanwhile, the producer price index -- measuring inflation at the wholesale level -- jumped 6.9% in September from a year ago, which topped expectations. This was spurred by a year-long drive in construction spending that includes government-led infrastructure investment.
Polls had CPI rising 1.6% in September from a year ago. August CPI was 1.8%.
PPI was predicted to have risen 6.3% in September from a year ago, steady from August.
The strong PPI print that points to higher factory gate prices may help markets outside of China as the East Asian economy continues to grow, translating into demand for raw materials, according to a variety of experts.
China has been posting strong economic numbers this year ahead of a leadership meeting in the capital city of Beijing later in the week, which will usher in a reshuffle in the top ranks of the Communist Party.
According to the website of the People's Bank of China, the world's second-largest economy is likely to post growth of 7% in the second half of the year thanks to rapid household spending. First half GDP growth was 6.9%.
China will be posting third-quarter GDP figures on Thursday, just a day after the Communist Party Congress starts. Economists look for 6.8% growth.