China inflation remains weak

Tuesday, 9 June 2015

The second of the week’s China data dumps is out and has again missed muted recovery hopes with the CPI at a lousy 1.2% versus 1.3% expected and the PPI at -4.6% versus -4.5% expected:

As you can see, the PPI especially has followed the ebbs and flows of stimulus pulses in growth since the structural adjustment began in late 2011. The current pulse remains dead despite recent easing across the board.

Another bad one for bulk commodities even if markets will leap to the short term conclusion that there will be more easing.

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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.