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Inflationary Pressures Moderate A Little

CHINA

Chinese inflation data provides a miss vs. estimates (PPI: +9.1% Y/Y vs. BBG median of +9.5%; CPI: +0.9% Y/Y vs. BBG median +1.0%). The sharp deceleration in the 12-month rolling sum of Chinese TSF data during ’21 (note that the measure has turned away from its trough in recent months) continues to hold predictive power when it comes to the Chinese inflationary impulse (with a 9-month lag, as flagged in our data preview). The continued pull back in Chinese PPI is essentially providing the PBoC with more room to ease, if required (even though the level of PPI remains elevated).

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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