- Analytics
- News and Tools
- Market News
- China: Weak CPI opens the door to extra PBoC easing – UOB
China: Weak CPI opens the door to extra PBoC easing – UOB
FXStreet reports that UOB Group’s Economist Ho Woei Chen, CFA, assessed the latest inflation figures in China and prospects of further easing by the PBoC in the next months.
“Both China’s Consumer Price Index (CPI) and Producer Price Index (PPI) eased off sharply in April… The decline in price pressure reflects lower commodity prices, weaker consumer demand as well as a moderation in food prices in particular pork prices in China. The key policy implication is clearly the need for the government to continue with its counter-cyclical measures.”
“The easing momentum in prices is evident as the sharp pressure on food prices starts to come off. CPI inflation fell on a month-on-month basis for the second straight month, down 0.9% from March with food prices down 3.0% m/m and pork prices down 7.6% m/m.”
“The deflation in PPI accelerated in April to the sharpest monthly drop in four years, led by the decline in prices of commodities and raw materials.”
“The easing inflation will create room for more monetary policy easing ahead as signalled in the PBoC’s Monetary Policy Implementation Report for 1Q20.”
© 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
