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πŸ‡¨πŸ‡³ China's inflation rebound is an energy story, not a credit one

πŸ‡¨πŸ‡³ China's inflation rebound is an energy story, not a credit one

China's CPI rose 0.8% year-on-year in August and PPI climbed 3.8%, but the gains sit almost entirely in energy and raw materials. Core inflation and factory-gate consumer goods barely moved, which points to an import-driven rebound, not a credit-driven one.

Screenshot of a Chinese NBS text release explaining August CPI and PPI, with numbered sections and dense Chinese paragraphs.
Mars argues China's August rebound is a two-speed story: energy-led factory prices are firming faster than household demand, with tech hardware adding only a sliver to CPI. Source

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