China inflation firms

Thursday 10 March 2016

China February inflation is out and jumped in the CPI to 2.3% from 1.8%. The PPI also rose from -4.9% from -5.3%:

CPI remains low and not a concern for monetary policy. The spike was driven by a huge 7.3% spike in food prices that will subside. The PPI has a good correlation with industrial conditions so indicates there is some firming underway:

Mind you, it actually looks like at least some of the firming is the iron ore price!

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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.