China’s latest inflation data reveals a clear shift beneath the surface, the AI-driven industrial cycle is now feeding into price pressures , even as consumer demand remains subdued. Key Takeaway China's producer prices rose at the fastest pace in nearly four years, driven by stronger demand for AI-related electronics, computing infrastructure and industrial metals. However, soft consumer inflation suggests domestic demand remains weak, highlighting a growing divergence between industrial activity and consumer spending. AI Demand Is Driving Factory Inflation Producer prices (PPI) rose 3.9% YoY Strong demand from: AI infrastructure buildout Electronics and semiconductors Industrial metals like copper and aluminium The global AI spending wave, especially data centre expansion is now directly influencing China’s upstream pricing power. Consumer Demand Still Lagging CPI grew only 1.2% YoY , below expectations Core inflation softened to 1.1% Weak consumption rem...
Cocoa futures fell to their lowest level in nearly two weeks as deliveries of beans to ports in Ivory Coast, the world’s top producer, picked up. Bean arrivals for the new season, which started on Oct 1, reached 192,804 tons, surpassing last year’s figure of 170,794 tons for the same period, according to ADM Investor Services Inc.
Earlier in the month, heavy rains had disrupted cocoa farming and transportation, but the improved weather has now allowed for better pod harvesting and drying conditions, contributing to the increase in supply.
Concerns about demand have also surfaced following mixed grindings data from Europe, Asia, and North America. Analysts at Fitch Solutions predict that higher cocoa prices could dampen consumption during the 2024-25 season.
As of 7:56 a.m. local time in New York, cocoa futures fell 1.4% to $7,290 a ton, the lowest since Oct 10. In London, cocoa prices also dropped 1.4%, while Arabica coffee rose 0.6% and raw sugar slipped 0.9%.
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