China CPI for January is due at 0130 gmt
- For the y/y, expected is 1.5%, prior was 1.8%
and China PPI for January also
- expected is -4.3%, prior was 4.9%
What to expect via UBS:
CPI to have slid on holiday distortions; PPI to have cooled further.
- High frequency data saw average food prices rising a slightly faster m/m sequential pace in January; vegetable prices were up 9.5%m/m, fruit prices up 4.5%m/m, and pork prices up 1.1%m/m.
- Non-food prices likely continued to rise m/m partly on domestic gasoline price hikes in recent months. That said, we think January's headline CPI probably slid to 1.4%y/y on last year's high base when CNY occurred with earlier timing.
High frequency data saw average producer goods price growth largely flattening in January, with prices of steel plunging, whereas those of coal and cement continued to rise.
- Input and output price sub-indices in NBS PMI both saw softer momentum last month. We thus see January PPI's sliding to 4%y/y from 4.9%y/y previously, mostly on a high base.
