China: inflation rises to 0.8% in August, double that of July

WHAT HAPPENED

Consumer prices in China rose 0.8% in August compared to the previous year, against 0.5% in July. Factory prices increased by 3.8%, also more than the previous month.

WHY IT MATTERS

The rebound suggests that the economy may be regaining some strength: consumption, manufacturing, and materials face less pressure to sell cheaply. But part of the increase comes from oil, around $99 per barrel, and other raw materials, not just from increased purchases in China.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, the data reduces pressure affecting Chinese companies and industrial producers: selling at increasingly lower prices. The relief may first be felt in manufacturing, materials, and basic consumption, although higher energy costs may also raise expenses.