Summary
[CITIC Securities: The differentiation between PPI and CPI is difficult to continue]CITIC Securities pointed out that due to the continuous increase in the prices of coal and high-energy-consuming industries, the price increase of industrial products continued to expand in September, with the PPI reading 10.7% year-on-year, a record high. Looking forward, taking into account winter heating demand, electricity price market reforms, and carry-over factors, it is expected that the year-on-year PPI reading during the year may continue to be in the higher range of more than 9%. Affected by pork prices, the CPI dropped by 0.1 percentage point from the previous value, which also intensified the differentiation between PPI and CPI, and the scissors gap hit a record high, but it is expected that this differentiation will be difficult to sustain. (Securities Times Network)
CITIC SecuritiesIt was pointed out that due to the continuous increase in the prices of coal and high-energy-consuming industries, the price increase of industrial products continued to expand in September.PPIThe year-on-year reading was 10.7%, a record high. Looking forward, taking into account winter heating demand, electricity price market reforms, and carry-over factors, it is expected that the year-on-year PPI reading during the year may continue to be in the higher range of more than 9%. Deepened by the drag of pork prices,CPIThe decline of 0.1% compared with the previous value also increased the differentiation between PPI and CPI, and the scissors gap hit a record high. However, this differentiation is expected to be difficult to continue. The driving effect of PPI reached 1.65 percentage points, which may reflect that PPI has been transmitted to CPI through some goods and services. Follow-up recommendations will focus on the possibility of non-food prices rising from the fourth quarter to next year.
(Source: Securities Times Net)
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