China CPI Inflation In January At 4.9%; PPI Inflation At 6.6%
(For January 2011)
China Consumer Price Index was up 4.9% in January, vs. 5.4% consensus and 4.6% December reading . Lower food price inflation has pushed the number lower. The CPI basket was changed (less food in it, more housing), but as far I can tell this didn’t change the reading much.
This is quite positive, I expect the monetary tightening will continue, but without the need for aggressive actions.
China Producer Price Index was up 6.6% vs. 6.2% consensus and 5.9% December reading.
