5.5! Right on expectations! We have a winner as the landing will be neither too hard, nor too soft... Just right. As for PPI, it came at 5%, on expectations of 5.8%, so the PBoC just telegraphed what we reported two days ago, namely that that one trillion yen in deposit backstops is not only urgently needed but coming any minute now. And so the reflation game begins anew.
And some actual notes from Bloomberg:
- Oct. consumer prices rise 5.5% y/y, easing for 3rd straight month after reaching 3-yr high in July.
- Consensus est. for Oct. CPI was 5.5% among 27 economists surveyed by Bloomberg; prior month’s reading was 6.1%
- Oct. CPI up 0.1% m/m
- Oct. food inflation 11.9% y/y vs 13.4% for Sept.; non-food prices rise 2.7% y/y
- Oct. PPI increases 5% y/y vs est. 5.8%, lower than 6.5% gain recorded for Sept.