Coming up at 0130 GMT, China inflation figures for April
China CPI expected 1.0% y/y, prior 0.4%
PPI expected 6.5% y/y, prior 4.4%
Quite the divergence in expectations. The PPI is ramping higher on the back of the surging prices of commodities
- copper, tin, iron ore, plastics prices to producers in China (and elsewhere of course) have risen to the highest in a decade
- supply constraints are a factor on this, along with rocketing demand
The impact on downstream pricing is lagging, hence the much expectations for the CPI. Much lower pork prices is a key holding down consumer inflation in China.
The data release is unlikely to impact major FX rates too much (barring any shock results).
