China CPI for May 0.2% y/y (expected 0.3%) & PPI -4.6% y/y (expected -4.3%)

China inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term figures for May 2023

• China CPI 0.2% y/y

  • vs. expected 0.3% y/y, prior 0.1%

  • the m/m CPI was -0.2% (expected -0.1, prior -0.1)

• PPI -4.6% y/y

  • vs. expected -4.3% y/y, prior -3.6%

Wholesale price inflation has sunk further into deflation. The biggest impact on the PPI right now in China appears to be slow demand. Until this turns around the PPI is expected to defate. This is a negative for company profits and in turn employment and business investment. There are other possible explanations, but that's mine. Comments are, of course, welcome - I'd be keen to hear alternative accounts.