ICYMI: China inflation data (May) was out over the weekend

Factory gate inflation (PPI) came in above expected while the CPI was in line

CPI 1.8% y/y

• expected 1.8%, prior 1.8%
• m/m was 0.2%

CPI appears quite stable at below target.

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PPI 4.1% y/y, price rises in commodities (crude, metals) cited along with base effects

• expected 3.9%, prior 3.4%
• for the m/m, 0.4% (April was -0.2%)

The higher PPI could ease concern over a slowing momentum in the economy, provide a lift to industrial earnings.