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Stronger In a Range


Weaker In A Range


Ending The Week On A Soft Note


Bearish Risk Growing


Stronger, But Still Vulnerable


SP500 PE Ratio vs. CPI Inflation

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China's inflation rose 0.9% y/y in April, quickening from March's 0.4% gain as services prices rebounded amid the holiday and the improved Covid situation. The result is in line with the median forecast of 1.0%.

The Producer Price Index measuring factory gate prices jumped 6.8% y/y from March's 4.4% rise, exceeding the 6.5% forecast and registering the highest since October 2017, according to data released by the National Bureau of Statistics on Tuesday.

Here are the key takeaways:

  • Non-food prices, mainly plane tickets, gasoline and diesel, rose 26.9%, 20.1% and 21.9% y/y, pulling up the CPI by 1.05 percentage points. Food prices, with a further fall in pork, dragged the CPI by 0.14 pp.
  • The CPI fell 0.3% m/m compared with last month's 0.5% fall, mainly driven by declining pork and vegetable prices amid sufficient supply.
  • The core CPI, excluding food and energy prices, was up 0.7% y/y in April, recovering from the previous 0.3%
  • The PPI grew 0.9% m/m, decelerating from the 1.6% reported last month, as the price increase in domestic petroleum-related industries slowed due to lower international crude oil prices.