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China inflation figures for January are out and are OK with CPI at 1.8% and PPI -5.4%:
The CPI is contained and largely irrelevant. As I’ve said before, the PPI has been a useful leading indicator on Chinese industrial growth in the past so its lift might presage a better period, if it is sustained. Much of the lift came in manufacturing:
Producer Prices -5.3% -5.9% -5.9% -5.9% -5.9% -5.9% -5.3%
Mining -19.8% -19.7% -19.9% -20.8% -21.2% -20.9% -19.8%
Raw Materials -9.1% -10.3% -10.7% -10.8% -11.4% -11.1% -9.1%
Manufacturing -4.9% -5.4% -5.2% -4.9% -4.8% -4.9% -4.9%
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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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