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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 inflation data will come out overnight (1.30 London time), with market expecting inflationary pressures to continue to ease.
- PPI inflation is expected to decelerate to 9.5% YoY in January, down from 10.3% the previous month and down from a 26-year high of 13.5% reached in October 2021.
- The sharp contraction in Chinese 'liquidity' (TSF 12M Sum) in 2021 has been pricing in a significant deceleration in inflation in the coming 9 to 12 months.
- The chart below shows that China liquidity has strongly led PPI inflation by 9 months in the past 15 years.
- We have previously seen that inflationary pressures have remained ‘low’ in numerous Asian/ SE Asian countries (relative to DM and CEEMEA/Latam economies) in the past 6 months (Philippines, Vietnam, Bangladesh, Indonesia).
- In addition, PPI inflation in China has been decelerating faster than what market was expecting in recent months.
- A faster deceleration in PPI inflation leaves more room for policy easing, which could continue to support domestic risky assets in the medium term.
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.
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