China: CPI slightly below expectations, PPI in line with consensus - TDS

Analysts at TDS note that China’s June CPI and PPI stayed flat from May’s print at 1.5% and 5.5% year on year respectively.

Key Quotes

“CPI was slightly below market’s consensus of 1.6% while PPI came in line with expectations. PPI manages to hold steady despite the weakening oil price but as Chinese authorities move to curb excessive borrowing, demand for raw materials may weaken and turn PPI lower.”