The Chinese inflation accelerated slightly in April. The CPI data came in at 1.2 percent year-on-year after a 0.9 percent print seen in March. But after the seasonal adjustment, the trend data imply that underlying inflation pressure stays quite weak, implying that the economy is not on a strong footing yet, noted Commerzbank in a research report.
Meanwhile, as anticipated, the PPI inflation rate eased considerably in the month to 6.4 percent from March’s 7.6 percent. On a sequential basis, the PPI inflation slowed to 0.4 percent, demonstrating the weakening momentum.
Falling producer prices, along with weaker than anticipated imports and PMI figures, show that investment growth in the nation might moderate in the near term, stated Commerzbank. A cautious view is held on China’s economy.
