Chinese inflation falls sharply

Chinese inflation has reversed its February spike in March, down to 2.1% in March:

Source: Bloomberg

As you can see the falls were all about food prices. I don’t take a great deal out of this except to say Chinese food producers seem to have something in common with Australian oil companies: holidays are a good time to gouge.

The PPI on the other hand is interesting:

Source: Bloomberg

This role over rather suggests that the industrial economy is China remains weak with deflation still in control. Now, where have we’ve seen that before?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.