Chinese inflation shows lingering weakness

China’s January inflation figures are out and some will take reassurance from the on consensus 2% figure.

But it’s the producer prices that are of interest, which have fallen away again down -2.2% versus -1.6 expected.

At this point those looking for an accelerating Chinese recovery in industry might want to see some pricing power returning. This looks to me like a grind back to growth, not a resurgence.

Then again, there are no doubt Chinese New Year distortions here as well.