February inflation data from China has been released Saturday 9 March 2019
CPI comes in as expected at 1.5% y/y but down from January
- prior was 1.7%
PPI comes in under expected at 0.1% y/y
- expected is 0.2%, prior was 0.1%
The slow PPI is a negative for industry profits, which given the slow down in trade and domestic demand is especially unwelcome right now. There are plenty of arguments from the Chinese authorities for more stimulus, and indeed it is on the way, this is another.
