On Wednesday 16 January 2022, 0130 GMT China inflation figures for January

  • China CPI expected 1.0% y/y, prior 1.5%

  • PPI expected 9.4% y/y, prior 10.3%

Headline CPI is expected to drop from the December reading. PPI, too, is expected lower but its still very strong indeed.

Scotia preview (in brief):

  • Want low inflation? Move to China.
  • Another deceleration may further fan calls for additional monetary policy stimulus.
  • Producer price inflation will also be updated that day and since it follows oil and other commodity prices it may soon face renewed upward pressure given the rally in oil prices since late last year.