Food prices gained 2.9% y/y
CPI 5.2% y/y
- expected 5.2% y/y, prior 5.4%
PPI -0.4% y/y
- expected -0.3% y/y, prior 0.1%
Official data (there are persistent questions about the veracity of official China data) published. That dropping PPI is a weight on corporate profitability (which in turns weighs on capex plans). Also, the high CPI could be a constraint on PBOC action to provider stimulus. I reckon the virus outbreak outweighs CPI concerns for now, but something to bear in mind.
