China inflation figures for January

CPI in at higher than expected 5.4%

  • expected 4.9% y/y, prior 4.5%
  • fastest increase since October of 2011
  • for m/m, up 1.4%
  • food inflation rocketing +20.6% y/y, non food +1.6% y/y
  • pork prices +8.5% m/m (they fell 5.6% in December) - up more than 100% y/y
  • core CPI +1.5% y/y (exclules food and energy) from 1.4% in December

PPI +0.1% y/y

  • expected 0.0% y/y, prior -0.5%
  • for m/m 0.0%
  • first increase in 7 months