China: CPI prints 2.3% y/y - TDS

Analysts at TD Securities note that China’s CPI was in line with expectations at 2.3% y/y, -0.4% m/m.

Key Quotes

“The breakdown shows that food prices in particular, weighed on inflation, down -0.9% m/m. Within this category, fresh vegetables dropped -2.6% m/m, but pork prices were up 1.2%, its biggest gain since Sep 18. However, CPI ex-food was also soft, down -0.2% m/m.”

“Overall, the data is unlikely to hinder China’s targeted easing policy, though recent signs that stimulus is beginning to work, suggests that a benchmark rate cut may now be off the table.”