China January CPI 0.9% y/y (vs. expected 1.0%) and PPI 9.1% y/y (vs. expected 9.5%)

CPI +0.9% y/y

• expected 1.0% y/y, prior 1.5%
• for the m/m +0.4%

PPI +9.1% y/y (lowest since July 2021 ... efforts from authorities to reign in high raw/input material costs are showing a return)

• expected 9.5% y/y, prior 10.3%
• for the m/m -0.2%

A slight reduftion in the rate of wholesale prices (PPI). Surging prices at the wholesale level have not, so far, translated into much higher consumer level prices, and indeed these too have shown a slowing in the rate of increase from the previous month.

As I posted earlier, if the People's Bank of China wants to provide looser monetary policy the CPI 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 is not standing in the way. Yesterday the PBoC left the rate on its 1 year operation unchanged, which probably means the 1 and 5 year loan prime rates (LPR) setting due on the 21st will also remain as is:

• PBOC inject 300bn yuan via a 1 year MLF - rate unchanged at 2.85%

more to come