Chinese inflation data for April is out at 9:30 p.m. ET.
Economists polled by Bloomberg are looking for consumer prices to rise 2.3% year-over-year. This compares with a 2.1% rise the previous month.
Economists are looking for producer prices to fall 2.3%. This compares with a 1.9% decline in March.
China has set an inflation target of 3.5% for 2013. Markets will be watching food inflation in particular. Bank of America’s Ting Lu expects food inflation to tick higher, rising 3.1% in April, from 2.7% in March.
“According to Ministry of Commerce, the weekly wholesale food prices seemed to stabilise from mid-April after declining 7 weeks in a row post the Lunar New Year holiday,” he wrote in a note earlier this month. “Still, the average prices so far in April have fallen by 0.9% from March (in particular, pork prices dropped by 6.7%).”
Last month we saw pork prices fall 5.5%. The government has been purchasing pork for its national pork reserve to help bolster prices.