This post was originally published on this site.Softer than expected CPI and PPI readings reinforce the picture of a two-speed Chinese economy, with strong exports and factory output offset by weak domestic demand, adding to the case for the accelerated fiscal spending Beijing’s leadership signalled at July’s Politburo meeting. The data suggests deflationary pressure has not been fully resolved despite the earlier boost to producer prices from the Iran conflict and Strait of Hormuz disruption, leaving analysts expecting an M-shaped inflation path through the rest of the year. Continued softness in household demand, tied to the property market slump and...