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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