- Analytics
- News and Tools
- Market News
- China’s CPI inflation stable in June - ABN AMRO
China’s CPI inflation stable in June - ABN AMRO
Arjen van Dijkhuizen, the senior economist at ABN AMRO, notes that CPI inflation in China was stable at 2.7% yoy in June, and still below the 3% ‘target’ following a pick-up in preceding months driven by swine flu effects on food prices.
- “Food price inflation jumped from 0.7% yoy in February to 8.3% in June, the highest level since January 2012. Core inflation has been quite stable, coming in unchanged at 1.6% yoy in June.
- Meanwhile, producer price inflation has fallen back again, to 0.0% yoy in June, after a short-lived pick-up in March/April. That is putting downward pressure on industrial profits and leads to higher debt repayment pressures. Falling producer prices in China also have the potential to spark global deflation fears.
- We should add that the current developments are not at all comparable with the sharply negative PPI numbers in 2012-2016 (during the commodity slump). All in all, we think that the latest inflation figures are in line with our view that the PBoC will continue with easing monetary policy through (significant) RRR cuts and (modest) rate cuts as well as through targeted measures to support bank liquidity and bank lending, particularly to the private sector.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
