China Sept CPI Rises 0.9% Y/Y, PPI Up 5.0% in Fastest Gain Since June 2022

The striking feature here is the divergence: producer prices accelerating at their fastest pace in years while consumer inflation remains subdued, a combination that points to upstream cost pressure not yet passing through to households. That matters for China's policy mix, since it constrains easing even as domestic demand looks soft. The stronger-than-expected trade figures and the tech-led Hong Kong gain suggest external demand and sentiment are holding up better than the domestic price data imply. Whether PPI strength feeds into CPI, or fades as a base effect, is the open question.