China CPI rises at fastest pace since Aug 2014, beats expectations

FXStreet (Mumbai) - Chinese price pressures picked up in August, with consumer prices rising at the fastest pace since August 2014, however, the factory gate prices fell at the quickest pace in six years last month.

According to the National Bureau of Statistics (NBS), China's CPI rose 2.0% y/y in August,, the fastest pace in a year, and beating the market forecast of a 1.9% rise.

Pork prices were the main positive contributor to the CPI last month, surging 19.6% y/y in August. Food prices overall were up 3.7% on annual basis.

While, the Producer Price Index (PPI), which tracks the change in prices of goods as they leave the factory gate, fell at the fastest rate in almost 6 years last month; down 5.9% y/y. Markets expected the price gauge to decline 5.6% in August.