More on China inflation data today

The data is here from earlier:China July CPI 1.4% y/y (expected 1.5%) & PPI 5.5% y/y (expected 5.6%)

Reuters have a recap up now with a little more:

On PPI:

• prices for key raw materials up slightly on expectations of deeper capacity cuts going into the winter months of heavy pollution

CPi:

"The current level of consumer inflation is so mild that the PBOC will be comfortable resuming the deleveraging process in the financial sector," Iris Pang, ING economist wrote in a note ahead of the data. "We expect the central bank to keep liquidity either as tight as in July or even slightly tighter, and push interbank interest rates higher, especially at the short-end to reduce leveraging activities by interbank participants, which include banks and non-bank financial institutions."