MNI BRIEF: China Inflation Seen Easing - MNI Liquidity Survey

Just over half of traders questioned for the MNI China Liquidity Survey said domestic inflation fears were somewhat eased from last month following policy actions by Beijing. In a special question added to the survey, half traders reported an eased concern from last month while 37.5% of the participants still saw inflation as a concern going forward.

"Food prices have come down along with the increased supply, although they were still at a 15-month high in April. The hike was probably conveyed by the quick rise in commodity prices," a Guangdong based trader said. "Commodity prices have eased, inflation concerns have gradually faded away," he added

The last State Council regular meeting focused on the "unreasonable rise" of commodity prices, and proposed measures to prevent inflation transferring to CPI, which could hurt improving retail sales.