Chinese inflation data undershoots expectations in April

Chinese consumer price inflation rose less-than-expected in the year to April with an increase of 1.5% reported. The figure, above the 1.4% pace of March, missed forecasts for a rise of 1.6%.

From a year earlier non-food inflation held steady at 0.9%, the same level seen since February, while food inflation accelerated to a four-month high of 2.7%. Pork prices, up 8.3% on year compared to 2.0% in March, largely explained the increase.

Revealing upstream price pressures continue to be non-existent, producer prices fell 4.6% on year, unchanged from March, with the figure below expectations for a decline of 4.4%.

Six of eight categories recorded declines from a year earlier with extraction, production and raw material prices falling 19.6%, 5.9% and 8.3% respectively. Overall producer prices have now declined for 38 consecutive months.

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