August Inflation Rises

China’s inflation rose faster than anticipated in August, but remained slow overall. The CPI, a major gauge of inflation, rose to a seven-month high increase of 1.8%, up from July’s 1.4% and beating market expectations of 1.6%. The core consumer inflation, which does not include volatile food and energy prices, increased 2% YoY, slightly up from July’s 2.1%. The PPI, which measures the costs of goods at the factory gate, increased to a four-month high of 6.3%, compared to 5.5% in July.