10 Mar 2015
China CPI rebounds from 5-year lows – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team reviews the Chinese CPI and PPI release, and further adds that PBoC’s deputy governor maintains a positive outlook on inflation, noting that China has a lesser risk of deflation.
Key Quotes
“China Feb CPI Y/Y: 1.4% V 1.0%E”
“China Feb PPI Y/Y: -4.8% V -4.3%E; 36th month of decline”
“China inflation data were in focus in today's session, coming in mixed with a lower than expected PPI and higher than anticipated CPI. Food CPI contributed to the rebound, rising to 2.4% v 1.1% prior, while non-food CPI was up slightly at 0.9% v 0.6% prior.”
“Stats Bureau official attributed the increase to holiday factors and a large rise in vegetable and fruit prices.”
“PPI has now been negative for 3 consecutive years, and the decline last month appears to have grown worse.”
“NBS noted the drop was exacerbated by falling oil refining, chemical fibre, and material costs.”
“Separately, PBoC Dep Gov Yi Gang said CPI would remain in positive territory in the near future, pointing to Japan and Europe having larger deflation risks than China.”
“PBoC advisor Chen also noted there is no risk of hard landing in China as economy is stabilizing and improving.”
Key Quotes
“China Feb CPI Y/Y: 1.4% V 1.0%E”
“China Feb PPI Y/Y: -4.8% V -4.3%E; 36th month of decline”
“China inflation data were in focus in today's session, coming in mixed with a lower than expected PPI and higher than anticipated CPI. Food CPI contributed to the rebound, rising to 2.4% v 1.1% prior, while non-food CPI was up slightly at 0.9% v 0.6% prior.”
“Stats Bureau official attributed the increase to holiday factors and a large rise in vegetable and fruit prices.”
“PPI has now been negative for 3 consecutive years, and the decline last month appears to have grown worse.”
“NBS noted the drop was exacerbated by falling oil refining, chemical fibre, and material costs.”
“Separately, PBoC Dep Gov Yi Gang said CPI would remain in positive territory in the near future, pointing to Japan and Europe having larger deflation risks than China.”
“PBoC advisor Chen also noted there is no risk of hard landing in China as economy is stabilizing and improving.”