China CPI and PPI are due, they are unlikely to be too much of a surprise, but famous last words and all that

  • Coming at 0130GMT
  • CPI expected 2.0%, prior 1.9%
  • PPI expected 4.5%, prior 4.7%

Nomura:

  • CPI inflation is likely to edge down further in July as high-frequency data suggest food price deflation widened modestly in the month, more than offsetting the seasonal increase in non-food price inflation implied by historical patterns.
  • We expect PPI inflation to soften in July as high-frequency data suggest largely stable prices of overall industrial products, while favourable base effects subside in Q3. Recent fiscal stimulus measures could pose some upside risk to our forecast, but we believe it will take longer to fully feel their effect.