According to the data released by the National Bureau of Statistics of China on 10th September, in August, the consumer price index (CPI) went up year-on-year while the producer price index (PPI) fell year-on-year.

Anbound's research team is of the view that the trend of the CPI and PPI in August was as expected although the scale exceeded the expectation.

The disaggregated data indicates that apart from the rise in CPI for food department, there is no significant improvement on the deflation in other departments.

In the future, the easier monetary policy will continue.