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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA DATA
A reminder that China Feb inflation figures are out tomorrow. CPI is expected at 1.9% y/y (forecast range is 1.2% to 2.3%), with the prior read at 2.1% from Jan. PPI is expected at -1.3% y/y (forecast range is -0.5% to -1.7%). The prior read in Jan was -0.8%.
- Headline consumer prices are expected to be weighed down by lower food prices and a return to more normal conditions in the services sector, post the LNY period. Note core prices rebounded to 1.0% y/y in Jan.
- Last week's PMIs showed increased price pressures in the manufacturing space. Input prices rose to 54.4 from 52.2, although this arguably suggests more upside risks to the PPI rather than CPI. Base effects and weaker commodity prices in Feb are expected to offset.
- Output prices for the manufacturing PMI were more muted but still back above 50 (51.7 versus 48.7 in Jan).
- For the non-manufacturing PMI, input prices were 51.1, down slightly, while selling prices nudged up to 50.8 from 48.3.
Fig 1: China PPI & China Manufacturing PMI Input Prices
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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