China CPI 4.5% y/y (expected 4.7%) and PPI -0.5% y/y (expected 0.4%)

Consumer and producer inflation data from China for December

• CPI comes in at 4.5% y/y, expected 4.7% y/y, prior 4.5%

• PPI comes in at -0.5%, against the expected -0.4% y/y, prior -1.4%

The CPI levelling out at its level from the previous month, while not good news is better than was expected (which is). Pork pries fell on the month, so that is a positive.

The PPI is also very much a focus, the deflation seen here has been, and is, weighing on industry profit. Little respite in this result.