Free Trial
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.
CHINA
- China PPI inflation surprised positively overnight and rose more than expected by 12.9% YoY in November (vs. 12.1% exp.) but decelerated from the 26-year high of 13.5% reached the previous month.
- On the other hand, CPI inflation came in below expectations at 2.3% but accelerated from the previous month and is currently standing at its highest level since August 2020.
- Investors have been questioning recently if inflationary pressures are peaking in China and if PPI inflation is about to gradually decelerate in the coming months.
- The chart below shows that China liquidity, which has been a strong driver of PPI inflation by 9 months in the past 15 years, suggests that the inflation peak is near and that we should enter into a ‘disinflationary’ period in the next 6 to 12 months.
- Therefore, a ‘disinflationary’ environment will give the PBoC more room for policy easing in the medium term and could be positive for domestic risky assets.
Source: Bloomberg/MNI
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok