Here Comes Chinese Inflation...

china inflation

Chinese inflation for March is out at 9:30 p.m. ET. 

Economists polled by Bloomberg are looking for consumer prices to rise 2.5 per cent year-over-year (YoY).

This compares with a 3.2 per cent rise in February, to a 10-month high.

Producer prices are expected to fall 1.9 per cent YoY, after falling 1.6 per cent the previous month. 

Last month, food prices climbed 6 per cent on the year. Since food prices account for a larger part of the inflation basket, investors will be watching to see if this was a one-off rise, driven by the Lunar New Year holiday. 

Bank of America’s Ting Lu expects food inflation to fall 1 per cent, and for non-food inflation to fall one per cent.

China has set an inflation target of 3.5 per cent for the year. While the central bank wants to keep inflation in check, the National Development and Reform Commission (NDRC) wants to ensure growth says strong and this is likely to keep the central bank’s hands tied

Here’s a look at consumer and producer prices since 2001:

chinese inflation chart

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.