Consumer and producer inflation data from China for December 2024
PPI remains in deflation and CPI barely avoids it. Pretty much as expected from China.
The People’s Bank of China is wary of providing too much stimulus, such as a rate cut, due to financial stability and yuan weakness concerns. A political consideration now is that China will want to hold off on letting the yuan slide, keeping the threat of that happening in case its needed as a leverage tool in the event of Trump tariffs.
Monthly PPI -0.1%
- vs. prior +0.1%