9 May 2014
Chinese CPI dropped below 2% - Danske Bank
FXStreet (Edinburgh) - Analyst Anders Fischer at Danske Bank noted the sharp drop of Chinese consumer prices during April.
Key Quotes
“In China consumer price inflation in April dropped markedly to 1.8% y/y (consensus: 2.1% y/y) from 2.4% y/y in March and inflation in China is now at the lowest level since October 2012”.
“The drop in inflation in April was mainly driven by lower food prices. Food-price inflation is likely to pick up in the second half of the year on the back of the increase in food commodity prices we have seen on a global scale recently”.
“Hence, Chinese inflation is probably close to the bottom. Nonetheless, it remains subdued and substantially below the government’s 3.5% critical threshold”.
Key Quotes
“In China consumer price inflation in April dropped markedly to 1.8% y/y (consensus: 2.1% y/y) from 2.4% y/y in March and inflation in China is now at the lowest level since October 2012”.
“The drop in inflation in April was mainly driven by lower food prices. Food-price inflation is likely to pick up in the second half of the year on the back of the increase in food commodity prices we have seen on a global scale recently”.
“Hence, Chinese inflation is probably close to the bottom. Nonetheless, it remains subdued and substantially below the government’s 3.5% critical threshold”.