Inflation data from China is due at 0130GMT on Wednesday 12 June 2019
- CPI expected 2.7% y/y, prior 2.5%
- PPI expected 0.6% y/y, prior 0.9%
CPI is expected to continue its climb (it was 1.5% in February and up since then). Much of this is due to rising food prices, specifically pork as swine fever inflicts a heavy toll on pigs.
On the other hand core components of CPI have been falling - the PBOC will likely look through pork prices and take cues from core CPI declines for more policy 'flexibility'.