Chinese economy back in the spotlight this week - UOB

Analysts at UOB noted that we get more key data from China this week.

Key Quotes:

"This time, it is all about prices."

"July consumer prices are expected to stay put at 1.5% y/y, similar to June’s. Meanwhile, producer prices are forecasted by the market to edge higher to 5.6% y/y, from 5.5% y/y earlier."

"Again, we look to earlier-released indicators to determine how confident we are with consensus numbers. It seemed mixed. On one hand, the Bloomberg Intelligence Economics’ food price tracker dropped 1.6% y/y in July, more than the 0.9% y/y decline in June."

"On the other hand, Tsinghua’s internet based consumer price index rose 0.3% from a month earlier. Putting these pieces together, the CPI will probably follow consensus expectations of a stable and steady number from the previous month."