Ahead of China inflation data today, CASS warns on structural inflation risk

At 0130 GMT we get the China inflation data for March. I posted earlier:

  • CPI expected 2.6%, prior 2.9% – lower food prices will likely drag the result down from February
  • PPI expected 3.3%, prior 3.7% – price effects (factory output prices expected to have declined a little on the month) likely to take this lower from February

Just noting that reported in the Economic Information Daily (Chinese media, comes via Bloomberg) is a piece from a researcher at the Chinese Academy of Social Sciences

  • China should closely monitor global oil prices, pork prices and home rental prices in 1st-tier cities to prevent structural inflation risks
  • Also notes price rises since the February holiday (Lunar New Year) for paperboard, tires, cement, chemical fertilizer, building materials, food and beverages, and home appliances

Perhaps we see an upside surprise in the inflation numbers today? I can’t see it’ll impact too much on AUD … bigger fish being fried right now 9Syria,trade issues the most immediate that spring to mind)

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