China consumer prices are currently in line with expectations
On Tuesday, producer and consumer prices in China appeared to be mixed, thus demonstrating that producer prices dipped less than expected. As for consumer prices, they were in line with expectations.
April’s CPI in China dived 0.2% month-on-month as expected and at a 2.3% pace year-on-year. That’s somewhat lower than the previous 2.4% revenue. Then, April’s year-on-year PPI descended 3.4%, compared to the expected 3.8%.
The overall effect of the recent surge in commodity prices is quite evident in today’s inflation data. However, broad price pressures is still quite stable.
Looking ahead, we suppose consumer price inflation to remain close to current levels for the rest of the year. Furthermore, we expect non-food inflation to surge as the ascend in crude prices during the second half of the last year offers a weaker base for comparison.
Additionally, financial analysts hope for a further recovery in producer price inflation in the upcoming quarters because commodity price deflation keeps easing.