9 Jul 2014
Inflation figures heading down in China – Danske Bank
FXStreet (Edinburgh) - Senior Analyst Morten Helt at Danske Bank assesses the recent release of the CPI in the Chinese economy.
Key Quotes
“Data released overnight showed that Chinese consumer inflation eased more than expected in June, while producer prices declined at the slowest pace in more than two years adding to signs of a stabilisation in the Chinese economy”.
“Consumer prices rose 2.3% y/y in June (consensus 2.4%, Danske Bank 2.5%) after gaining 2.5% in May”.
“Inflation has moved higher in recent months mainly on the back of higher food price inflation, as the seasonal decline in food prices during the spring and early summer has been less than usual. However, food price inflation eased in June, rising 3.7% y/y compared to 4.1% y/y in May, while consumer prices excluding food and energy remained unchanged at 1.7% y/y in June”.
Key Quotes
“Data released overnight showed that Chinese consumer inflation eased more than expected in June, while producer prices declined at the slowest pace in more than two years adding to signs of a stabilisation in the Chinese economy”.
“Consumer prices rose 2.3% y/y in June (consensus 2.4%, Danske Bank 2.5%) after gaining 2.5% in May”.
“Inflation has moved higher in recent months mainly on the back of higher food price inflation, as the seasonal decline in food prices during the spring and early summer has been less than usual. However, food price inflation eased in June, rising 3.7% y/y compared to 4.1% y/y in May, while consumer prices excluding food and energy remained unchanged at 1.7% y/y in June”.