CPI 2.1% y/y - lot lower than expected
- expected 2.6%, prior 2.9%
- China's Stats bureau citing fading Lunar New Year holiday effects the main reason for the CPI slow down
PPI 3.1% y/y, ditto but not quite so much.
- Lower for a 5th consecutive month though.
- expected 3.3%, prior 3.7%
- slowest factory inflation in more than a year
- commodity price falls contributing to the lower results
Comments from Standard Chartered Plc in Shanghai (via Bloomberg):
- "For now, there's no sign of China exporting inflation to the world
- "Policy makers won't focus on inflation this year, instead they'll prioritize tasks such as cutting leverage."
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This may well be another piece of evidence supporting the contention that the global economic recovery has lost some steam. if so, that will further weigh on the AUD ... or it should, thine thing has been a bull beast! (OK, maybe that's overstating its rise from recent lows, but it has shown some resilience).
