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 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:
more to come