China CPI data came out over the weekend (Weekend data – China July CPI: +2.3% y/y (vs. +2.3% expected) – PPI also)

From the Wall Street Journal:

  • China’s inflation in July stayed well within the government’s comfort zone
  • suggesting consumer demand remains tepid despite loose monetary policy and government stimulus measures
  • The CPI hasn’t breached the government’s stated tolerance level of 3.5% since March 2012.
  • Report quotes Liu Li-Gang, an economist from ANZ bank, in a research report Saturday: “Deflation risks may even rise in the foreseeable future if the growth momentum weakens again”

More at the link (gated): China Inflation Remains Tame in July