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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