China May PPI And CPI Update

China's PPI reached a 46-month high of 3.9% y/y in May, led by energy and chemical sectors, while CPI remained steady at 1.2% y/y. The bank expects manageable inflation and maintains a muted outlook for monetary policy.

Key Takeaways

• 1.China's producer price inflation (PPI) climbed to a 46-month high of 3.9% y/y, driven by energy, chemicals, and industrial demand.
• 2.Consumer price inflation (CPI) remains stable and mild at 1.2% y/y, with limited pass-through from producer prices due to regulatory factors.

Table of Contents

• PPI continued to rise.
• CPI relatively stable and mild.
• Manageable inflation impact.