MNI China Daily Summary: Monday, February 10

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MNI: NORWAY JAN CORE CPI +0.1% M/M, +2.8% Y/Y

MNI: NORWAY JAN CPI +0.2% M/M, +2.3% Y/Y

MNI: US DEC CONSUMER CREDIT +$40.8B

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

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GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

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CHINA: China’s PPI and CPI Telling Two Different Stories. 

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  • In out data preview last week we forecast two different stories coming from the PPI and CPI data releases over the weekend, and that certainly was the case.
  • Mired in deflation, PPI’s print was weaker than consensus at -2.3% (consensus -2.2%; prior -2.3%) and was the 28th month in succession of decline speaks to the absence of pricing power that corporates have.
  • CPI however tells a different story rising +0.5% YoY (consensus +0.4 ; prior +0.1%)the first rise since August last year.
  • The largest contributor to the rise was food prices up +0.4% and services +1.1%.
  • Core rose 0.6% YoY from 0.4% in December.
  • The MoM figures sees CPI rising +0.7%.
  • Authorities will be heartened by the CPI numbers, given the focus on improving consumption in the economy whilst being conscious of the distorting effect of the Lunar New Year holidays would have had on this month’s release. 
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  • In out data preview last week we forecast two different stories coming from the PPI and CPI data releases over the weekend, and that certainly was the case.
  • Mired in deflation, PPI’s print was weaker than consensus at -2.3% (consensus -2.2%; prior -2.3%) and was the 28th month in succession of decline speaks to the absence of pricing power that corporates have.
  • CPI however tells a different story rising +0.5% YoY (consensus +0.4 ; prior +0.1%)the first rise since August last year.
  • The largest contributor to the rise was food prices up +0.4% and services +1.1%.
  • Core rose 0.6% YoY from 0.4% in December.
  • The MoM figures sees CPI rising +0.7%.
  • Authorities will be heartened by the CPI numbers, given the focus on improving consumption in the economy whilst being conscious of the distorting effect of the Lunar New Year holidays would have had on this month’s release.