Chinese inflation data is due today:
- This snapshot from the ForexLive economic data calendar, access it here.
- The times in the left-most column are GMT.
- The numbers in the right-most column are the 'prior' (previous month) result.
- The number in the column next to that, where is a number, is the consensus median expected.
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Scotia:
- Higher oil prices are likely to pull headline inflation up toward 2% y/y (1.5% prior) but with little effect on core inflation that has just been decelerating to a touch over 1% y/y.
- Either way, China’s inflation rate would remain well below the 3% goal
NAB:
- The market is looking for the PPI yoy reading to ease from 8.3% to 7.8% while CPI is expected to climb to 1.8%yoy from 1.5% previously,
- China’s subdued CPI dynamics are not an impediment for PBoC easing. A 10bps cut to the MLF next week still looks the most likely outcome.
Westpac:
- Elevated commodity prices continue to buoy producer inflation (market f/c: 7.8%yr) with limited pass through to consumer prices (market f/c: 1.8%yr)
ING:
- relatively subdued inflation in China persists given recent lockdown
