Both CPI and PPI have come in higher than the consensus estimate.

China CPI 2.1% y/y

  • expected 1.8%, prior 1.5%
  • for the m/m +0.4% (expected +0.2%, prior 0.0%)


PPI 8.0% y/y

  • expected 7.7% y/y, prior 8.3%
  • m/m is +0.6%

Despite the higher than expected CPI its still well within the PBOC target range and thus leaves plenty of space for further monetary policy easing steps.