China: February CPI 2.3% y/y (expected 1.8%) & PPI -4.9% y/y (expected -4.9%)

China inflation data for February

• CPI 2.3% y/y, vs. expected 1.8%, prior was 1.8%
• PPI -4.9% y/y, vs. expected -4.9%, prior was -5.3%.

Much higher CPI than expected, fastest increase since July of 2014, but the CPI is still below the government's 3% target

• CPI +1.6% m/m
• PPI -0.3% m/m

Food costs climbed rapidly, +7.3% y/y (non-food +1.0% y/y)