We've got Chinese February PPI and CPI coming up at 0130
I did a little preview here
LiveSquawk's Antony Barton has done a preview too, with an interesting point on how the PBOC treats the inflation target, differently to other central banks.
Its for subscribers (free trial available here) ... but I've, errr, 'liberated' it:
Chinese consumer prices are expected to have risen by a steady 1.8% YoY during February, whilst producer prices are expected to have fallen by 4.9% over the same horizon, from a prior dip of 5.3%.Although the official CPI target for 2016 was set at 3.0% (steady against the 2015 official goal, with actual CPI sub 2.0%), Capital Economics note that "China's inflation target is not, as sometimes reported, a target similar to those pursued by central banks elsewhere as the immediate focus of monetary policy. Strictly speaking, it is expressed as a target for average inflation over the whole year. In practice, it marks the upper boundary of policymakers' comfort zone for inflation."Producer prices are set to be less subject to strong base effects as we pass through 2016, as last year's commodity rout is factored into the base.Whilst domestic demand remains on the back foot due to a property overhang and a manufacturing sector burdened with oversupply, analysts will continue to look for a combination of further fiscal and monetary easing, although policymakers have suggested that no large scale easing will be implemented.Anthony Barton -- AnthonyBarton@Livesquawk.com (@AntBarton89)
