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China consumer prices in line with expectations, PPI better

Investing.com -

Investing.com - Consumer and producer prices in China were mixed with data Tuesday showing that producer prices dropped less than expected, while consumer was in-line with expectations.

In China, CPI for April fell 0.2% month-on-month as expected and at a 2.3% pace year-on-year, a tad lower than the 2.4% gain seen. PPI for April year-on-year fell 3.4%, compared to a expected drop of 3.8%.

"The impact of the recent rally in commodity prices is apparent in today's inflation data. Overall though, broad price pressures remain relatively stable," Capital Economics said in a note to clients.

"Looking ahead, we expect consumer price inflation to remain near current levels for the rest of the year. Admittedly, we expect non-food inflation to rise as the drop in oil prices during the second half of 2015 provides a weaker base for comparison. That said, with the pork cycle likely to turn soon food inflation ought to drop back before long. In contrast, we anticipate a further recovery in producer price inflation in the coming quarters as commodity price deflation continues to ease."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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