Free Trial

Heading South




Breaches Key Short-Term Support


Late SOFR/Treasury Option Trade

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
  • 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.

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.