China May CPI Inflation At 5.5%; PPI Inflation At 6.8%
(For May 2011)
China Consumer Price Index was up 5.5% in May, vs. 5.2% consensus and 5.3% April reading.
China Producer Price Index was up 6.8% vs. 6.8% consensus and 6.8% April reading.
Strong PPI suggest that the inflation will not come down so fast.
The POBC rose the reserve requirement after the CPI release (to 21%(21.5% for large institutions and 19.5% for small and medium-sized institutions)).
