Data from China due Thursday - preview of March CPI and PPI

Inflation data from China due on 11 April 2019 at 0130GMT.

• March CPI expected 2.3% y/y, previous was 1.5%
• PPI expected 0.4% y/y, previous 0.1%

The big jump in the CPI from February to March is expected to come from higher food prices (pork). Food prices are not part of 'core' inflation, so the jump is not a reason for the PBOC to be concerned (for now at least).

ps. PBOC CPI target is around 3%.

Via Barclays:

• We expect CPI inflation to increase markedly to 2.3% from 1.5% in February, mainly due to a large increase in pork prices and higher oil prices. We think PPI inflation will edge higher to 0.4% in March from 0.1% previously, as evidenced by the sizeable increase in manufacturing PMI input prices.