Dec China CPI 4.1% y/y vs 4.0% exp

• CPI was at 4.2% y/y in November.
• CPI rose 0.3% in Dec, as expected.
• PPI 1.7% y/y versus 1.8% expected.
• Darn near right on the screws, which is rare for Chinese data

Non-food CPI was at a tame 1.9% and I can’t see the point in keeping rates high in a pointless fight against food inflation. On balance, even if this is a tick high, it’s still sequentially lower and clears the way for a RRR cut.