China January CPI:
- 2.5% y/y (vs. expected 2.4% and prior was 2.5% y/y)
- For the m/m, +1.0% (+0.7% m/m expected)
China January PPI:
- -1.6% y/y (expected -1.6%, prior was -1.4% y/y)
- For the m/m, -0.1%
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The CPI remains unchanged at +2.5% y/y for January (+2.5% y/y also in December)
- The National Bureau of Statistics has attributed the January CPI mainly due to rising prices of food (vegetables, fruits and diary products).
- Food inflation +3.7% y/y
- Non-food inflation +1.9%
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The PPI is lower, +1.6% y/y in January (vs. -1.4% in December)
- NBS said producer prices slowed due to the Chinese New Year holiday impact on production
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Earlier, there had been a warning about the threat of deflation, and at the producer price level it is getting a little worse: China Securities Journal: Economic growth to slow further this year, risk of deflation accumulating
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AUD/USD has popped the stops above 0.9905 and has now settled above 0.9000
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Tom Orlik, of Bloomberg, argues that rapidly expanding credit is the main concern of the PBOC, which is keeping with a tight rein on liquidity and rates:
