The inflation figures from China for April

CPI 1.2% y/y

  • expected 1.1%
  • prior 0.9%
  • Up 0.1% for the m/m figure
  • Food inflation down 3.5% y/y (down 0.6% for the m/m)
  • Non-food inflation +2.4% y/y, +0.2% m/m

PPI 6.4% y/y

  • expected 6.7%
  • prior 7.6%
  • the PPI is down 0.4% for the m/m
  • A faster slowing than was expected, still up a hefty 6.4% y/y though. The slowing in PPI looks set to continue for the balance of the year. Lower prices for commodities to weigh somewhat on industrial profits in China going ahead now also.

We were kept in suspense for a few seconds there, data slow to come out