China CPI and PPI

  • +2.0% for CPI, expected is +1.8%, prior was 1.6%
  • -5.9% for PPI, expected is -5.6%, prior was -5.4%

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Quick analysis from FastFT (subscription required, but well worth it IMO).

In brief:

CPI up at fastest pace in 13 months

  • Inflation pressures are minimal as a result of low energy prices, the still-recovering housing market, and the overcapacity across many sectors of the economy

PPI still showing slack and overcapacity in the world's second largest economy

  • Reflects the downturn in China's housing market