Seeking Alpha

Chinese inflation rises but PPI continues to drop

  • China's CPI accelerated to +2.4% on year in March from +2% in February but came in below consensus of +2.5%
  • On month, China's CPI fell 0.5%, as expected, vs +0.5% in February.
  • Food prices rose 4.1% as the cost of fruit and vegetables jumped, although non-food inflation was +1.5%.
  • "Inflation remains very low in China and growth is still the concern," says economist Xu Gao. "The pressure on the central bank to loosen monetary policy will grow."
  • Meanwhile, factory-gate prices (PPI) dropped for the 25th consecutive month, falling 2.3% on year vs -2% previously and forecasts of -2.2%.
  • "The lingering deflation trend in the PPI seems more worrying," says JPMorgan economist Haibin Zhu, "as it reflects structural overcapacity in a number of sectors as well as the cyclical downturn in the industrial sector."
  • The Shanghai Composite is +0.05%. (PR)
Comments (2)
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
     
    It is funny we can see this so clearly in china yet the US has been suffering this for years now, especially after the crash where commodity prices skyrocketed as produced products and services wilted and yet, here, they claimed tame inflation even as food prices soared and doubled and oil and gas prices rose on the back of stimulus and QE.

     

    The US dollar is clearly trending down even as we taper, so expect more inflation on a wilting economy thanks to dovish economic policy and a government that thinks running massive deficits is doing good because they are not growing. Just wait until capital gains revenues drop...
    11 Apr, 06:07 AM Reply Like
  • june1234
    , contributor
    Comments (2501) | Send Message
     
    Food prices rose 4.1% in one month but economists say inflation remains very low. Stop eating people and it will get even lower
    11 Apr, 06:23 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|