Chinese inflation likely to come in at 1.6 pct in 2017, settle at 2 pct in medium-term - Commerzbank

The headline inflation of China has been accelerating again since its decline at the start of 2017. According to a Commerzbank research report, the average consumer price inflation is likely to come in at 1.6 percent for the whole of this year, which should then settle at 2 percent in the medium term. However, this would be below the government’s official target of 3 percent.

Meanwhile, the nation’s producer prices on the other hand have continued to rise sharply. It rose 6.9 percent on a year-on-year basis in October. Until now, the noticeable rise in producer prices has had no effect on consumer prices, which implies that the rise is partially because of a pro-active fiscal policy and that the economy has not stabilized on a wider front, stated Commerzbank.

At 15:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was bearish at -87.0267, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 46.4173. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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