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10 Dec 2014
China’s CPI falls to lowest levels since November 2009 – DB
FXStreet (Barcelona) - The Deutsche Bank Team notes that China’s below-than-consensus November CPI of 1.4% yoy is the lowest monthly reading since November 2009.
Key Quotes
“Back to China, overnight the November CPI came in below consensus at +1.4% yoy (vs. +1.6% expected). This is a fall from +1.6% in October and marks the lowest monthly inflation reading since November 2009. PPI continued to struggle and came in at -2.7% yoy (vs. -2.4% expected). Chinese PPI has been in negative territory since Feb 2012 with little signs of this trend abating. Consumer prices may well be a reflection of the slump in global oil and commodity prices but PPI continues to signal the challenges around excess capacity in Chinese industrials.”
“The bulls may well argue that soft prices are inevitably ‘policy friendly’ which gives authorities more room to ease although the bears would probably argue that the recent run up in Chinese equities may have complicated the planned easing bias.”
Key Quotes
“Back to China, overnight the November CPI came in below consensus at +1.4% yoy (vs. +1.6% expected). This is a fall from +1.6% in October and marks the lowest monthly inflation reading since November 2009. PPI continued to struggle and came in at -2.7% yoy (vs. -2.4% expected). Chinese PPI has been in negative territory since Feb 2012 with little signs of this trend abating. Consumer prices may well be a reflection of the slump in global oil and commodity prices but PPI continues to signal the challenges around excess capacity in Chinese industrials.”
“The bulls may well argue that soft prices are inevitably ‘policy friendly’ which gives authorities more room to ease although the bears would probably argue that the recent run up in Chinese equities may have complicated the planned easing bias.”