🇨🇳 Chinese Consumer Inflation Rises While Producer Prices Drop
🔸 CPI increased by 0.7%, the highest in nearly 2 years. 🔸 PPI decreased by 2.2%, indicating businesses are still facing difficulties. 🔸 These two indices measure different things, so they can move in opposite directions. • CPI measures the prices consumers pay. • PPI measures the prices received by manufacturers. 🔸 Food and service prices are rising due to stimulus measures. 🔸 Conversely, factories are forced to lower prices due to competition and trade pressures.
For example: Flour suppliers are struggling, facing intense competition, so they have to lower their flour prices to (PPI drops). But bakery prices at shops are rising to (CPI increases) because more customers want to buy bread, and costs such as rent, electricity, and labor are all rising.
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🇨🇳 Chinese Consumer Inflation Rises While Producer Prices Drop
🔸 CPI increased by 0.7%, the highest in nearly 2 years.
🔸 PPI decreased by 2.2%, indicating businesses are still facing difficulties.
🔸 These two indices measure different things, so they can move in opposite directions.
• CPI measures the prices consumers pay.
• PPI measures the prices received by manufacturers.
🔸 Food and service prices are rising due to stimulus measures.
🔸 Conversely, factories are forced to lower prices due to competition and trade pressures.
For example: Flour suppliers are struggling, facing intense competition, so they have to lower their flour prices to (PPI drops). But bakery prices at shops are rising to (CPI increases) because more customers want to buy bread, and costs such as rent, electricity, and labor are all rising.
🔸 Thanks to strong exports, China still aims for 5% growth, but the recovery process remains weak and unbalanced. #FedRateCutPrediction #PostonSquaretoEarn$50 $BTC $ETH