China's May CPI justifies further PBOC action

China's May consumer price index came in at +2.0% vs +2.2% y/y expected, while the PPI stood at -2.8% y/y vs -3.2% expected. The data reinforces the case for the PBOC to continue the implementation of accomodative/stimulatory policies in China. Note, China and Hong Kong markets are closed today and tomorrow.