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China has released its March inflation figures and they’re still very weak with the CPI at 1.4% y/y and PPI at -4.6% y/y:
There is no impediment here to further easing if the PBOC wishes it.
The second derivative turn in the PPI is most interesting and is consistent with at least some firming in industrial activity as various stimulatory policies kick in. We’ll need to see several months, though, to be sure that things are no longer getting worse in the industrial economy.
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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.