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    Chinese mixed inflation data

    One of the highlights of the Asian session on the data front was CPI and PPI from China for May. CPI started accelerating in October, from 1,3% YoY to 2,3% in April, but this new reading brought it back to 2%, while consensus expected it to scale back by only a notch. However the surprised came from food prices, so is not that important. PPI rebounded from -6% YoY in late 2015 to -3,4 in April and when it comes to May we saw step up the pace of moving out of deflation. It went straight to -2.8% (consensu was -3.2%) and already has three highly positive MoM readings in a row.

    link do pliku

     Source: Bloomberg

    With such a climb of PPI the real lending rate for producers is moving decisively down, and what happens to producer prices is by far more important for the real lending cost than all teh rate cuts by PBOC last year. 

    link do pliku

     Source: Bloomberg

    Generally we can classify these inflation numbers as positive developments in China. 

    Any person acting on this information does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

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