SHANGHAI, Oct. 15 (SMM) --  According to data from the National Bureau of Statistics (NBS), China CPI for September was up 1.9% YoY, while PPI was down 3.6% YoY. CPI China's CPI for September 2012 was up 1.9% YoY, with 2.0% growth in urban area, 1.7% growth in rural area, 2.5% growth in food price, 2.7% growth in non-food prices, 1.8% growth in consumer price and 2.3% growth in service prices. YTD CPI through September averaged 2.8% YoY. The rapid decline in CPI suggested that inflationary control is no longer the most urgent task at present and to guarantee stable economic growth shall be the priority currently. China’s economy is still under recession which shall last for a relatively long period. It is expected that the macroeconomic outlook in Quarter 4 will not be optimistic. In order to stimulate economic growth, China’s central bank may cut banks' reserve requirement ratio and may adopt other monetary policy in the future.

According to data from the US Department of Labor last Thursday, last week’s US initial jobless claim fell sharply, far lower than market expectation and a new low since February 16th, 2008.The US jobless claim in the week ending on October 6th fell by 30,000 to 339,000, while the previous expectation was 370,000. In addition, the US PPI for September was higher than market expectation, fueling expectation that the US monetary policy will be adjusted from loose to slight tight.

The Standard & Poor’s cut the Spanish credit rating, renewing concern over the European debt crisis. Last week, the IMF cut forecast of global economy and the World Bank warned risks of global economic slowdown. As uncertainties remain on whether or not major banks will provide more supports, investors exit market, which has weighed on base metal prices recently.