China: PPI deflation eases further – Standard Chartered

Standard Chartered's report indicates that China's Producer Price Index (PPI) deflation likely eased to 1.5% year-on-year in January, driven by month-on-month increases in metal and energy prices. The report also notes that CPI inflation may have moderated due to base effects, while core CPI likely rose due to gold prices and seasonal factors. The official manufacturing PMI showed a slight decline, suggesting a cautious outlook amid geopolitical risks.

PPI and CPI trends in focus

"PPI deflation may have eased to 1.5% y/y in January on m/m increases in metal and energy prices."

"CPI inflation likely edged down 0.2ppt to 0.6% y/y in January on base effects."

"We estimate that PPI rose 0.3% m/m on higher metal and energy prices."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)