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China’s June inflation data is out and is quite relaxed with the CPI in at 2.3% and the PPI at -1.1%:
Both were near enough consensus. I’m more interested in the PPI given it captures the prices that matter to the Australian economy in the industrial base. It’s been falling for 28 months but it’s ebbs and flows around the pace of falls have perfectly matched the degree of stimulus loosed upon the economy in waves since the end of the boom in late 2011. Right now we’re enjoying a flush of less deflation as activity picks up. A few more months of that and down it’ll go again.
And on that subject, the People’s Bank of China is out today with some comments. From MNI via FL:
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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.
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