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MNI 5 Things: China CPI Set to Decelerate; PPI to Rebound

MNI (London)
--China April CPI Seen Up 1.9% y/y vs March 2.1%: MNI Survey
     BEIJING (MNI) - China's National Bureau of Statistics will release the
latest consumer price index and producer price index Thursday. MNI highlights
five things to look for:
     -Consumer inflation is expected to fall to 1.9% from the 2.1% seen in
March, according to the result of MNI's survey in which 19 financial
institutions participated.
     -The easing of CPI is helped by slowing price gains in food, including
vegetables as weather warms up and pork due to a surplus of supply over demand.
     -Lower non-food prices, such as the fall in natural gas prices as winter
ends, are helping put downward pressure on prices. The government's tight
controls over the property market are also weighing, contributing to a lower CPI
growth rate.
     -PPI growth may rebound to 3.5% in April from 3.1% in March, the latest MNI
survey showed.
     -Accelerating PPI was buoyed by higher commodity prices, such as metal,
rising as industrial production restrictions the Chinese government placed
during winter for reducing air pollution are lifted. Gasoline price are also
higher as geopolitical risks increase.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MAQDS$,MAUDR$,MAUDS$,MAUPR$,M$A$$$,M$Q$$$,M$U$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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