China inflation
China CPI 2.7% y/y (vs. expected 2.6% y/y, prior 2.5%). For the m/m, +0.6%
PPI -2.4% y/y (vs. expected -2.5% y/y, prior -3.0%). Still deflationary is expected at the business level. For the m/m, +0.4%
The marginally less negative PPI is due, say analysts, to higher commodity prices and higher industrial product prices. PPI is expected to become even more less negative in the months ahead, which should assist corporate profits (and thus capex). Note, though, staying negative is not as positive for profits (and capex) and getting into positive territory which looks to be many quarter sway still due to subdued domestic demand.
