Chinese CPI Jan arrives lower than expected, -0.3% YoY vs 0.0%

The Consumer Price Index as well as the Producer Price Index, released by the National Bureau of Statistics of China, has arrived as follows:

Consumer Price Index

• CHINA JAN CPI -0.3% Y/Y (REUTERS POLL 0.0% )
• 09-Feb-2021 19:31:15 - CHINA JAN CPI +1.0% M/M (REUTERS POLL +1.0%)
• 09-Feb-2021 19:31:29 - CHINA JAN FOOD CPI +1.6% Y/Y
• CHINA JAN FOOD CPI +1.6% Y/Y
• CHINA JAN NON-FOOD CPI -0.8% Y/Y

Producer Price Index

• CHINA JANUARY PPI +0.3 PCT FROM A YEAR AGO (REUTERS POLL +0.4 PCT)
• 09-Feb-2021 19:30:49 - CHINA JANUARY PPI +1.0 PCT FROM PREVIOUS MONTH
• Rising for the first time in a year. 

Meanwhile, AUD/USD had been on the front foot on Wall Street as the commodity sector gets a boost from a bout of USD weakness.

However, it has stalled in the Asian session and was trading down 0.13% one minute ahead of the data at 0.7728. 

Meanwhile, the data has not had an impact. 

About the Consumer Price Index

The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchase power of the CNY is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.