China February inflation data: CPI 1.0% y/y (expected 1.9%) & PPI -1.4% y/y (exp. -1.3%)

China data for February 2023. Inflation well under target according to the official surveys.

CPI

• -0.5% m/m vs. +0.2% expected and +0.8% in January
• +1.0% y/y vs. expected +1.9% and +2.1% in January

PPI

• 0.0%, flat, m/m
• -1.4% y/y vs. expected -1.3% and -0.8% in January

more to come

Inflation is no impediment to further stimulus from Chinese authorities. The incrementally lower GDP target for this year has lessened the prospect of flood like stimulus though.