FXStreet reports that economist at UOB Group Ho Woei Chen, CFA, assessed the latest set of inflation figures in the Chinese economy.

“China’s CPI moderated to 2.4% y/y in August… Food price inflation eased to 11.2% y/y from 13.2% y/y in July while core inflation (excluding food and energy) was unchanged at 0.5% y/y. Given the high base of comparison, we expect the headline inflation to moderate to under 2.0% in 4Q with full-year averaging around 3.0%.”

“UOB Group maintain forecast for the 1Y loan prime rate (LPR) at 3.75% by end-2020 from current 3.85% but acknowledge that a further rate cut is looking less probable now as data points to sustained growth recovery in 3Q.”