CPI, PPI Seem Bottoming Out - Commentary

Wen Bin, chief economist of China Minsheng Bank, has called the price bottom, as CPI and PPI will likely rebound on a yearly basis. In a commentary, he said the high comparison base over the same period last year had driven the 0.3% y/y decline in July CPI. Pork prices may bottom out with seasonal demand picking up, while international energy prices will likely rebound on increased demand during autumn and winter, he said. Core CPI is expected to gradually return to the historical mean following a series of pro-growth policies, Wen added noting PMI has rebounded for two consecutive months. (Source: 21st Century Business Herald)