Tue, 09/15/2020 – 08:35
Import prices rose 0.9% MoM (well above the 0.5% expected) and Export prices rose 0.5% MoM (also better than the +0.4% expected). But despite both the beats, import and export prices remain underwater on a YoY basis.
However, we note that this deflationary impulse is at odds with the lagged response that is typically seen when China’s credit impulse is expanding so dramatically…
So either we will see dramatic resurgences in import and export prices or China’s credit impulse is simply filling up an endless bucket of malinvestment domestically… as import prices from China remain stubbornly stuck at 13-year lows…
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Author: Tyler Durden