The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
China’s producer inflation speeds down in October
In October, China's factory-gate inflation decelerated for the fourth month due to cooling domestic demand as well as manufacturing activity, thus indicating that the country’s government would probably come up with more growth-boosting measures against the backdrop of trade frictions with America.
Meanwhile, in October, consumer prices rallied at the same tempo pace from September, with food prices steady, as National Bureau of Statistics revealed.
A gauge of the prices companies receive for their services and products, the producer price index managed to ascend by 3.3% in October from 2017, diving from September’s reading of 3.6%.
Market analysts had generally expected the October producer price inflation rate to go down to 3.3%. The PPI rallied by 0.4% on a month-to-month basis.
Soaring import prices will probably apply some pressure to producer prices, although it’s not enough to prevent PPI inflation from diving, as some market experts pointed out.
In China, economic momentum has been receding for the last months. The previous week the country’s leader Xi Jinping told that the world's number two economy is experiencing strengthening downward pressure.
For the last time, underlying factory-gate inflation has been affected by receding consumption, with China's fixed-asset investment surge hovering around record minimums and also industrial profit surge decelerating for the fifth month in a row in October.
The Chinese government’s crackdown on financial risks has somewhat speeded down credit demand, while a lot of mid-sized businesses have struggled to pass on higher prices to their clients.
Official and private factory polls have demonstrated a serious months-long downturn on export orders, hinting that China’s escalating trade clash with America is starting to affect Chinese businesses.
As a matter of fact, raw material prices headed north by about 6.7% last month from 2017, declining from a 7.3% profit in September.
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